By Christiana Afua Nyarko, GNA
Accra, July 23, GNA_ – Government is advancing a 100m scfd gas processing facility and a 1,200MW power plant to boost energy security, cut costs and create jobs, Dr. Ato Forson has announced.
Presenting the 2026 Mid-Year Budget Review to Parliament on Thursday, Dr. Cassiel Ato Forson, Minister of Finance, said the gas processing facility was being developed through a partnership between Government and the private sector.
He said land had been acquired for the project, while environmental assessments, engineering designs, financial due diligence and project structuring were underway.
Dr. Forson said the project would be submitted to Parliament for consideration, with financial close expected before the end of 2026.
He said the facility was projected to create nearly 1,000 jobs and generate approximately US$2 billion in benefits to the State over the next five years through fuel savings, foreign exchange savings, taxes, levies and dividends.
On power generation, the Minister announced that Government was also developing a 1,200-megawatt state-owned combined-cycle gas-fired power plant at Kafodzidzi-Abrobeano in the Komenda-Edina-Eguafo-Abrem Municipality in the Central Region.
He said feasibility studies had confirmed the project’s viability, while environmental, engineering and permit processes were progressing steadily.
According to Dr. Forson, the first phase of the project, comprising 600 megawatts, is expected to be commissioned in 2028.
He said Government had secured the gas turbines directly from GE Vernova, resulting in estimated savings of between *35 and 45 per cent compared with procuring the equipment through third parties.
The Minister said the power plant was expected to lower electricity generation costs, contribute to a reduction in electricity tariffs by between 10 and 20 per cent, and create more than 2,000 direct and indirect jobs during the first phase.
He said the projects formed part of Government’s broader strategy to expand domestic energy infrastructure, improve efficiency in the power sector and support sustainable economic growth.
Ghana has increasingly prioritised the utilisation of its domestic natural gas resources to reduce reliance on imported liquid fuels for electricity generation, lower production costs and improve the reliability of power supply.
Gas from the Jubilee, TEN and Sankofa-Gye Nyame fields currently supports thermal power generation, while the country continues to pursue investments in gas processing, transmission and power infrastructure to meet growing electricity demand.
The aforementioned initiatives align with Government’s objective of strengthening energy security, improving fiscal sustainability in the energy sector and promoting industrialisation.
The Ministry of Energy and Green Transition, together with state institutions such as the Ghana National Gas Company and the Volta River Authority, has consistently identified domestic gas infrastructure as a critical pillar of Ghana’s long-term energy strategy.
GNA
Reporter: Christiana Afua Nyarko
Email: [email protected]
Edited by Samuel Osei-Frempong