Ghana's proposed Second Gas Processing Plant (GPP2) is expected to save the country up to $500 million annually and generate approximately $2 billion in benefits over five years. The plant will also create nearly 1,000 direct and indirect jobs, according to Energy Policy Analyst Prince Lumor. In an energy brief published by the Institute for Energy Security (IES), Mr Lumor highlighted the potential benefits of the proposed facility, including strengthening Ghana's energy security and reducing dependence on imported gas and expensive liquid fuels.
The proposed plant will expand domestic gas processing capacity beyond the existing Atuabo Gas Plant in the Ellembelle District of the Western Region. This will enable Ghana to process natural gas from offshore fields, including Jubilee, TEIN, and Sankofa. Currently, Ghana relies on gas supplies from Nigeria through the West African Gas Pipeline (WAGP), which has periodically disrupted thermal power plant operations, forcing them to rely on more expensive imported liquid fuels.
The country's reliance on imported liquid fuels for thermal power generation costs approximately $1 billion annually when gas supplies are insufficient. Additionally, Ghana could recover more than $150 million annually in potential value from gas that is flared or remains unprocessed. The proposed plant could address these challenges by increasing the country's capacity to process natural gas.
The project is also expected to support future electricity generation, including plans for a 1,200-megawatt state-owned thermal power plant announced by President John Dramani Mahama in New York on September 25. Reliable and competitively priced gas will support manufacturing, industrialisation, and other businesses that depend on stable energy supplies.
The proposed plant will create employment opportunities during construction and operation, including for engineers, technicians, maintenance personnel, logistics operators, and local suppliers. However, the anticipated benefits depend on adequate financing, sufficient gas supplies, reliable transportation infrastructure, and effective project implementation.
Prince Lumor called on the Ministry of Finance to provide details of the project's estimated cost, funding arrangements, and budgetary allocations. He also urged the Ministry of Energy and Green Transition and the Technical Implementation Committee to communicate progress on feasibility studies, site selection, construction timelines, and the expected completion date.
The Steering and Technical Committee for the project was inaugurated on May 12, 2025, by the Minister for Energy and Green Transition, John Abdulai Jinapor, and Finance Minister, Dr Cassiel Ato Forson. Mr Lumor concluded that the second gas processing plant could become a strategic pillar of Ghana's energy security if the government matches its ambitions with sound planning, transparent financing, and accountability.
Key points
- The proposed plant could save Ghana up to $500 million annually and create nearly 1,000 direct and indirect jobs.
- The project will support future electricity generation and industrial development in Ghana.
- The anticipated benefits depend on adequate financing, sufficient gas supplies, reliable transportation infrastructure, and effective project implementation.
