The government says its Gas-to-Power Strategy remains central to efforts to reduce electricity generation costs, with the shift from expensive light crude oil to natural gas expected to cut generation costs by at least 75%.

Presenting the 2026 Mid-Year Fiscal Policy Review in Parliament on Thursday, Finance Minister Dr Cassiel Ato Forson said the strategy, which replaces expensive light crude oil with cleaner and cheaper natural gas, is expected to significantly reduce the cost of generating electricity.

"Mr. Speaker, the government remains firmly committed to its Gas-to-Power Strategy, which is replacing expensive light crude oil with cleaner and cheaper natural gas. This transition is expected to reduce electricity generation costs by at least 75 percent," he said.

Dr Forson announced that the government had increased gas supply for power generation by an additional 35 million standard cubic feet per day by the end of June 2026, bringing the total daily supply to about 490 million standard cubic feet.

"I am pleased to report that, by the end of June 2026, the government had increased gas supply for power generation by an additional 35 million standard cubic feet per day, bringing total supply to about 490 million standard cubic feet per day," he stated.

Providing a breakdown of the increase, the finance minister said:

"This increase comprises 10 million standard cubic feet per day from the OCTP partners led by Eni and 25 million standard cubic feet per day from NGas."

Dr Forson said the shift from light crude oil to natural gas is already yielding substantial financial benefits for the country.

"This strategic shift is already delivering significant savings. By replacing light crude oil with natural gas, the government saved GH¢3.08 billion, equivalent to US$268.5 million, in fuel costs during the first half of 2026."

To sustain the gains from the strategy, the Finance Minister announced that the government, in partnership with the private sector, is developing a modular gas processing facility with a capacity of 100 million standard cubic feet per day.

"Mr. Speaker, the government in partnership with the private sector is developing a 100 million standard cubic feet per day modular gas processing facility."

He said preparatory works on the project are progressing steadily.

"Land acquisition has been completed, while environmental assessments, engineering design, financial due diligence, and project structuring are underway."

According to Dr Forson, the project will soon be presented to Parliament for consideration, with financial close expected before the end of the year.

"This will be submitted to Parliament for consideration. Financial close is expected before the end of 2026."

The Finance Minister said the gas processing facility is expected to generate significant economic benefits, including employment opportunities and substantial savings for the state.

"The project is expected 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."

The Finance Minister said the savings demonstrate the impact of the government's continued investment in cleaner and more affordable energy sources, adding that the Gas-to-Power Strategy remains central to efforts to reduce electricity generation costs and improve the efficiency of Ghana's power sector.