Ghana could save close to US$500 million annually by switching from liquid fuels to natural gas for power generation, Technical Advisor to the Minister of Energy and Green Transition on Petroleum, Ing. Dr Sulemana Yussif, has said.

He said expanding the country’s gas-processing capacity would be critical to achieving the savings as Ghana seeks to reduce its reliance on more expensive liquid fuels for thermal power generation.

“If we switch from liquid, let’s say LCO, light crude oil, to generate power and use gas, we are saving closer to half a billion on an annual basis,” Dr Sulemana said.

“That is huge.”

He was speaking at a Ghana Institution of Engineering (GhIE) Branch 4 discussion in Accra on September 3, 2026, on bottlenecks in Ghana’s energy-sector infrastructure.

The forum focused on the proposed second gas processing plant (GPP2) and an onshore natural gas pipeline, which are expected to expand the country's capacity to process and transport gas for power generation and industrial use.

Dr Sulemana said the proposed GPP2 would complement Ghana’s existing gas-processing infrastructure and provide additional processed gas for thermal power plants.

Ghana currently operates the Atuabo Gas Processing Plant, while the government is pursuing the second facility as part of its broader gas-to-power strategy. The Energy Ministry says GPP2 is intended to strengthen domestic energy security and support industrial and power-sector development.

Officials say preparations for the project are advanced, with mechanical completion expected in the first quarter of 2028 and operations targeted for the second quarter, subject to the project staying on schedule.

The government has previously highlighted the cost of relying on liquid fuels for power generation, with the Energy Ministry saying the country spends hundreds of millions of dollars annually on such fuels.

Dr Sulemana said moving more thermal generation onto domestic natural gas would therefore have significant implications for Ghana’s foreign exchange position.

General Manager for Engineering and Maintenance at Ghana Gas, Ing Maxwell Kwame Kelly, said the additional gas-processing capacity could also help moderate increases in electricity costs.

“Obviously, as you grow as a country, things will go up. But the rates at which things will go up will be reduced, yes,” he said.

He argued that the economic benefits of GPP2 should be assessed against the cost of not having sufficient gas-processing capacity.

“If you consider the alternative to not having the gas processing plant, you realise that the benefit is colossal,” he said.

The project is therefore being positioned not only as an infrastructure investment but also as part of efforts to reduce the cost pressures associated with thermal power generation.

Gas Business Manager at the Ghana National Petroleum Corporation (GNPC), Emmanuel Tamaku, said the benefits of increased gas-processing capacity would extend beyond power generation.

He said additional capacity would allow Ghana to better manage associated gas produced from its offshore oil fields, particularly where limited gas-processing capacity could constrain further oil production.

He also said the availability of adequate gas infrastructure could strengthen investor confidence in Ghana’s upstream petroleum sector.

The Energy Ministry has identified GPP2 as a key component of its broader Gas-to-Power Transformation Policy, alongside plans for a state-owned 1,200MW power plant and efforts to attract investment into the upstream oil and gas sector.

Chairperson of the Ghana Institution of Engineering, Greater Accra, Ing Dr Frank K Pinto, however, cautioned that the potential savings from increased gas utilisation would depend partly on the efficiency of the country's gas transportation infrastructure.

He said the proposed onshore pipeline would be important in ensuring that more of the economic value associated with gas transportation remains within Ghana.

The infrastructure would complement increased processing capacity by facilitating the movement of gas to areas where it is required for power generation and other industrial applications.

The discussions reflect growing efforts to increase Ghana’s use of domestically processed natural gas as part of a strategy to improve energy security, reduce exposure to costly liquid fuels and retain more foreign exchange within the economy.

The government says GPP2 is expected to expand Ghana’s gas-processing capacity beyond the existing Atuabo facility, which currently handles about 120 million standard cubic feet of gas per day according to the Energy Ministry.

Dr Sulemana’s estimate of nearly US$500 million in annual savings adds a significant financial dimension to the project, particularly at a time when reducing foreign exchange outflows remains a major policy priority.

The engineers therefore stressed the need for the processing plant and supporting pipeline infrastructure to be delivered efficiently if Ghana is to fully realise the expected economic and energy-sector benefits.