The country is set to build a new gas processing plant as part of a major push to expand domestic power generation by 1,200 megawatts to ensure Ghana's energy sustainability.
The government said the integrated gas processing plant will be developed in partnership with the private sector to create a 100-million standard cubic feet per day modular gas processing facility.
Presenting the 2026 Mid-Year Fiscal Policy Review to Parliament, the Minister of Finance, Dr Cassiel Ato Forson, said land acquisition has been completed, while environmental assessments, engineering design, financial due diligence and project structuring are underway.
The integrated gas processing plant, he said, will be submitted to Parliament for consideration. Financial close is expected before the end of 2026.
Aside from boosting the country's energy drive, the project is also expected to create nearly 1,000 jobs and generate about US$2 billion in benefits to the state over the next five years through fuel savings, foreign exchange savings, taxes, levies and dividends.
Dr Forson said the gas processing plant is strategic, as replacing light crude oil with natural gas saved GH¢3.08 billion, equivalent to US$268.5 million, in fuel costs during the first half of 2026.
1,200-Megawatt state-owned power plant
On the construction of a 1,200-megawatt state-owned power plant, the Minister said the combined-cycle gas-fired power plant will be located at Kafodzidzi-Abrobeano in the Komenda-Edina-Eguafo-Abrem Municipality of the Central Region.
Feasibility studies have been carried out and confirmed the project's viability, with environmental, engineering and permitting processes progressing steadily.
The first 600-megawatt phase is expected to be commissioned in 2028. To reduce costs, the government has secured the gas turbines directly from GE Vernova, achieving savings of between 35 and 45 per cent compared with third-party procurement.
The Finance Minister said the project will lower electricity generation costs, help reduce electricity tariffs by 10 to 20 per cent, and create more than 2,000 direct and indirect jobs during the first phase.
Reviving upstream oil and gas sector
As a way of ensuring feedstock for the facilities and enhancing power generation, the government has expressed readiness to revive the country's upstream oil and gas sector.
"Ghana's crude oil production declined sharply from 71.4 million barrels in 2019 to about 36 million barrels in 2025. To reverse this decline, the government has introduced investor-friendly reforms that have already secured more than US$3.5 billion in new investment commitments from the Jubilee and OCTP partners," he said.
Dr Forson said amendments to the West Cape Three Points and Deep Water Tano Petroleum Agreements will support the drilling of at least 10 new wells, increase gas production, reduce the Jubilee gas price by approximately 18 per cent, and increase GNPC's participating interest in the two petroleum agreements by 10 percentage points from 2036.
Increasing gas exports
The government has also concluded negotiations with the OCTP partners to expand the Non-Associated Gas system, increasing gas exports from 270 to 350 million standard cubic feet per day.
Negotiations are progressing for the development of the Eban-Akoma discoveries. "New petroleum agreements in the Western, Central and Voltaian Basins are also in negotiations. GNPC Explorco remains on course to commence exploratory drilling in the Voltaian Basin in the fourth quarter of 2026," he said.
The government is also updating the laws governing the upstream petroleum sector to make the country more attractive for investment, with the proposed amendments expected to be submitted to Parliament before the end of the year.
These reforms, he said, are already yielding results. Between January and May 2026, Ghana produced 17.1 million barrels of crude oil and exported 86.1 billion standard cubic feet of gas. Production has exceeded projections across major fields.
Oil production
On activities offshore, the current daily oil production at Jubilee has increased from the projected 68,000 barrels to about 95,000 barrels based on four wells drilled this year, while Sankofa production has risen to 28,000 barrels per day.
Gas exports have also increased from 245 million to approximately 282 million standard cubic feet per day.
Gas-to-power transformation
The Minister said the government remains firmly committed to its Gas-to-Power Strategy, which is replacing expensive light crude oil with cleaner and cheaper natural gas. This transition is expected to reduce electricity generation costs by at least 75 per cent.
By the end of June 2026, the government had increased gas supply for power generation by an additional 35 million standard cubic feet per day, bringing total supply to about 490 million standard cubic feet per day. This increase comprises 10 million standard cubic feet per day from the OCTP partners led by Eni and 25 million standard cubic feet per day from N-Gas.