Ghana aims to gradually eliminate crude oil from its energy generation portfolio in the medium term, as stated by President John Dramani Mahama.
This initiative will involve the construction of a second gas processing train to enhance domestic gas supply, boost energy efficiency, and support a cleaner, more sustainable fuel source.
The President noted that while there has been some disinvestment in the energy sector, new investments are emerging. For example, the upcoming second gas train will enable the processing of additional gas from the initial field.
He emphasized the necessity of this second train, as the existing plant in Atuabo is unable to accommodate the increased gas supply. Crude oil has proven to be an expensive and unstable fuel option for Ghana’s thermal plants.
The President is optimistic that transitioning to natural gas will alleviate the challenges faced by the energy sector, which has struggled with high operational costs and growing debts to independent power producers (IPPs). He mentioned that ENI has resumed drilling activities, and early indications suggest the potential discovery of significant oil and gas reserves.
If successful, this could lead to the complete removal of crude oil from power generation within the next three to five years, as he remarked at the 2025 Africa CEO Forum in Abidjan.
Furthermore, the President highlighted that the current economic recovery positions Ghana favorably for both upstream and midstream investment opportunities, asserting that the macroeconomic environment is stable and conducive for business.
John Dramani Mahama encouraged investors to collaborate with the government in enhancing oil and gas infrastructure for sustainable growth, stating that the sector had previously been neglected but he is committed to facilitating investment in Ghana’s oil and gas industry.
