Ghana Approves Second Gas Plant to Boost Energy Security and Industrial Growth

Currently, Ghana operates a single gas processing facility – the Atuabo Gas Processing Plant – located in the Ellembelle District in the Western Region.

The Government of Ghana has officially approved the construction of a second gas processing plant, marking a pivotal step toward enhancing the country’s energy security and industrial development. The project, championed by the Ministry of Energy and Green Transition in collaboration with the Ministry of Finance, is a bold move to harness Ghana’s abundant gas reserves, which are estimated at 2.1 trillion cubic feet.

This latest initiative is designed to strengthen the country’s gas-to-power infrastructure, reduce reliance on imported fuels, and support the broader goals of electrification and industrialization. The decision was recently approved by Ghana’s Cabinet, following a strategic review of the nation’s energy demands and the need to expand domestic gas processing capabilities.

Doubling Ghana’s Gas Processing Capacity

Currently, Ghana operates a single gas processing facility – the Atuabo Gas Processing Plant – located in the Ellembelle District in the Western Region. Commissioned in 2014, this plant has a processing capacity of 150 million standard cubic feet per day (mmscf/d). It produces lean gas for power generation, liquefied petroleum gas (LPG) for household and industrial use, and condensates for petrochemical applications.

The approved second gas processing plant will be co-located at the Atuabo site and will add another 150 mmscf/d in capacity, bringing Ghana’s total gas processing capability to 300 mmscf/d. This increase is expected to significantly improve gas availability for power generation, reduce the country’s dependence on expensive fuel imports, and enable broader industrial usage of gas resources.

Unlocking Value from Offshore Resources

The expansion will enable Ghana to more effectively monetize associated gas from offshore oil fields, particularly the Jubilee and TEN fields operated by Tullow Oil. Tullow recently commissioned the Jubilee South East Project in 2023, boosting output at the Jubilee field to 95,000 barrels per day. Further upgrades are planned for the TEN field’s floating production, storage, and offloading (FPSO) unit to improve gas handling capacity.

Tullow’s 2025-2026 drilling program includes plans for one new producer well and one injector well, signaling ongoing investment in the upstream sector. These projects yield substantial volumes of associated gas, and with the enhanced processing infrastructure, Ghana will be better positioned to reduce gas flaring, increase domestic gas utilization, and optimize energy efficiency across its oil and gas value chain.

Ghana’s Vision for an Energy-Secure and Industrialized Future

Ghana’s strategy to expand gas infrastructure aligns with the country’s long-term energy development goals. The West African nation has 17 oil and gas projects earmarked for development by 2027, underscoring a national commitment to transforming natural resource wealth into sustainable economic growth.

At a recent press conference in Accra, the Minister of Energy and Green Transition highlighted the urgency and importance of the project, noting that Ghana currently spends approximately $700 million annually on fuel imports to meet local energy needs. The second gas plant will not only help reduce this financial burden but also ensure a more resilient, cost-effective energy supply for the country.

“Gas is the backbone of our energy transition,” said the Minister. “With the second processing plant, we are making significant progress toward energy self-sufficiency, improving our power generation capabilities, and supporting industrial development throughout Ghana.”

Support from the African Energy Chamber

The African Energy Chamber (AEC), which advocates for sustainable energy development across the continent, has welcomed Ghana’s decision to expand its gas infrastructure. NJ Ayuk, Executive Chairman of the AEC, praised the government’s forward-thinking approach, emphasizing that natural gas remains a critical component of Africa’s energy future.

“By prioritizing gas infrastructure, Ghana is not only boosting its domestic production capacity but also establishing itself as a key regional energy hub in West Africa,” Ayuk said. “This project sets a strong example for other African nations on how to harness natural gas to power economies and uplift communities.”

A Regional Petroleum Hub in the Making

The new plant, once operational, will not only support national energy and industrial needs but also enhance Ghana’s role in the regional energy market. With increased production and processing capacity, the country is poised to export gas products to neighboring countries, further solidifying its status as a growing petroleum and gas hub in West Africa.

As Ghana takes bold steps to secure its energy future, the second gas processing facility represents more than just infrastructure development—it is a catalyst for job creation, economic diversification, and regional energy cooperation. With this landmark project, Ghana is demonstrating how strategic resource management can drive sustainable national development while contributing to Africa’s broader energy transition.