Ghana to ditch crude in power generation with second gas train – Mahama

Ghana is seeking to phase out the use of crude oil in its power generation mix over the medium term, President John Dramani Mahama has said.

This is to be achieved with the planned development of a second gas processing train to expand domestic gas supply, improve energy efficiency and promote a cleaner and more sustainable source of fuel.

“There was a bit of disinvestment in the energy sector but new commitments are coming up. So, for instance we are going to build a second gas train which is going to handle more gas from our first field.”

“We are going to put more gas on stream so we need a second train because our current plant in Atuabo cannot handle the extra gas”, the President mentioned.

Crude oil has been a costly and volatile fuel source for Ghana’s thermal plants.

But the President believes replacing it with natural gas will ease pressure on the energy sector, which has been bedevilled with high operational costs and mounting debts to independent power producers (IPPs).

“ENI are back, they are drilling again and early signs are that we might find considerable quantity of oil and gas. When that happens, we can eliminate crude oil in power generation completely in the next three to five years”, the President said at the 2025 Africa CEO Forum in Abidjan.

Also, the current economic recovery according to the President positions Ghana as a destination for both upstream and midstream opportunities stressing that the current macro-economic environment is stable and ripening for business.

John Dramani Mahama thus wooed investors to partner the government in scaling up oil and gas infrastructure for long-term growth.

“The oil and gas sector was toxic. I don’t know for what reasons but I think governments have not prioritised the sector. But I will lay a red carpet for anyone who wants to drill and pump in Ghana, he said.