(Ecofin Agency) - • Ghana plans to cut liquid fuel costs by half through a new natural gas plant.
• The project could reduce untreated gas losses of $151 million annually and stabilize power costs.
• An inter-ministerial committee has been formed to fast-track implementation.

The Ghanaian government has approved the establishment of a new natural gas processing plant in an effort to reduce reliance on liquid fuels and stabilize energy expenditures. With annual liquid fuel costs exceeding $1 billion, the initiative aims to cut this figure by half through greater use of domestic gas resources.

According to the Ministry of Energy, the plant is expected to generate annual savings of up to $500 million while enhancing the value of local gas, powering thermal plants, and supporting industrial output. It also aims to address losses linked to flaring or unprocessed natural gas, currently estimated at $151 million per year, according to Energy Minister John Abdulai Jinapor.

Finance Minister Cassiel Ato Forson has described the project as a strategic step toward securing Ghana’s “energy future” and improving fiscal sustainability.

In response to pressing budget constraints, the government has formed an inter-ministerial committee to expedite the plant’s development. The committee includes representatives from multiple ministries, the Ghana Gas Company, the Ghana National Petroleum Corporation (GNPC), and the private sector.

Officials expect the initiative to stabilize electricity production costs, strengthen the resilience of the national energy system, and rebuild investor confidence in a sector that has seen declining appeal since 2019.