New Gas Plant will Reinvent Ghana’s Energy Economy – Finance & Energy Policy Analyst

Ghana’s economic and energy future stands at a pivotal moment as government plans for a Second Gas Processing Plant (GPP II) move forward. According to Mr. Richmond Eduku, a Finance and Energy Policy Analyst, the project represents a transformational opportunity that must be embraced to strengthen the country’s economy, stabilize the power sector, and create sustainable jobs.

“The success of the Atuabo Gas Processing Plant is clear evidence of what Ghana can achieve with strategic investment in gas infrastructure,” Mr. Eduku said. Since 2017, when Ghana Gas transitioned operational control from Chinese firm Sinopec to an all-Ghanaian technical team, the country has saved over US$250 million. “That transition not only demonstrated the technical competence of Ghanaian engineers, but also proved the financial and strategic benefits of localising major national infrastructure,” he added.

Gas from the Atuabo plant currently fuels thermal power stations in Aboadze and Tema, significantly reducing the country’s dependence on imported crude and heavy fuel oil. This shift has helped cut operational costs for power producers like the Volta River Authority (VRA) and Independent Power Producers (IPPs), enhancing the financial sustainability of electricity generation. “Every dollar saved on fuel imports strengthens the cedi, boosts local investment, and supports economic growth,” Mr. Eduku emphasized.

Additionally, the plant has created thousands of jobs and stimulated local economies, especially in the Western Region. From engineering and logistics to maintenance and ancillary services, Atuabo has become a key job creator, with ripple effects across communities. “This is how infrastructure delivers real economic impact, by creating work and building skills,” he noted.

However, Ghana’s energy sector continues to face serious challenges, including a debt burden exceeding US$3 billion, unreliable power supply, and inefficiencies in distribution. Mr. Eduku argues that a second gas processing plant is essential to address these problems.

With offshore gas output increasing, especially from the Sankofa, TEN, and Jubilee fields, Ghana needs additional processing capacity to avoid gas flaring, meet rising domestic energy demand, and expand industrial use. The proposed GPP II would not only increase lean gas and LPG supply but also enable the development of petrochemical industries such as fertilizer, plastics, and methanol production.

“If Ghana fails to invest in new processing infrastructure, we risk wasting valuable gas resources and stalling our industrialisation drive,” Mr. Eduku warned. “GPP II is not a luxury; it’s a necessity.”

He called on policymakers, private investors, and international development partners to support the government’s efforts to fund and deliver the plant. “This is a moment for national alignment. The new gas plant will lower energy costs, create jobs, grow industries, and improve our trade balance. It’s a smart, strategic investment in Ghana’s future.”

Mr. Eduku concluded with a strong appeal: “The evidence is clear. The Atuabo Gas Plant worked. Now, let’s scale up with GPP II and take Ghana’s energy economy to the next level.