Ghana is saving about $500 million annually by increasing the use of natural gas for electricity generation, reducing the country’s reliance on imported crude oil and other liquid fuels, Energy and Green Transition Minister Dr John Abdulai Jinapor has disclosed.
According to Dr Jinapor, the increased availability of natural gas has enabled Ghana to substitute gas for expensive liquid fuels used in thermal power generation, resulting in significant savings in fuel import costs.
Speaking at the launch of the Petroleum Commission’s 15th anniversary celebrations on Tuesday, August 18, the Minister said the development had strengthened Ghana’s energy security and reduced pressure on the country’s import bill.
He said the savings from the increased use of gas amounted to approximately $500 million a year through what he described as “crude oil gas substitution.”
“When we assumed office, we were importing so much crude oil and other liquid fuels,” Dr Jinapor said.
He explained that government, working with industry partners including ENI and the Jubilee partners, had significantly increased domestic gas production to meet the needs of the power sector.
The Minister said the increased gas supply formed part of government’s broader gas-to-power strategy, which seeks to maximise Ghana’s domestic petroleum resources while gradually expanding the use of cleaner energy sources.
“We will maximise our petroleum resources whilst promoting renewable energy to complement that,” he said.
Dr Jinapor also announced an increase in Ghana’s upstream oil production, saying output had risen from approximately 90,000 barrels per day to 126,000 barrels per day.
He attributed the increase to interventions aimed at addressing operational challenges confronting oil producers and improving production from existing fields.
The Minister said government would continue to work with industry stakeholders to maximise Ghana’s petroleum resources while supporting the country’s transition towards a more diversified and sustainable energy system.
