By Christiana Afua Nyarko
Accra, July 23, GNA – The Government is advancing plans to develop a modular gas processing facility and a 1,200-megawatt state-owned gas-fired power plant.
The projects are intended to strengthen energy security, expand electricity generation capacity and reduce power generation costs.
Presenting the 2026 Mid-Year Budget Review to Parliament on Thursday, Dr Cassiel Ato Forson, Minister of Finance and Economic Planning, said the gas processing facility would have a capacity of 100 million standard cubic feet per day.
He said the facility was being developed through a partnership between the Government and the private sector.
Land acquisition for the project had been completed, while environmental assessments, engineering designs, financial due diligence and project structuring were underway.
The Minister 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 about US$2 billion in benefits to the State over the next five years through fuel savings, foreign exchange savings, taxes, levies and dividends.
Dr Ato Forson also announced plans to develop 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 assessments, engineering designs and permit processes were progressing.
The first phase of the project, comprising 600 megawatts, is expected to be commissioned in 2028.
Dr Ato Forson said the 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.
He said the power plant was expected to lower electricity generation costs, contribute to a reduction in electricity tariffs of between 10 and 20 per cent and create more than 2,000 direct and indirect jobs during the first phase.
The projects are part of the Government’s strategy to expand domestic energy infrastructure, improve efficiency in the power sector and support economic growth.
GNA
Edited by Kenneth Sackey
23 July 2026
Reporter: Christiana Afua Nyarko