Ghana’s second gas processing plant could save $500m annually, create 1,000 jobs – IES analyst

Ghana’s proposed Second Gas Processing Plant (GPP2) could save the country up to US$500 million annually, generate approximately US$2 billion in benefits over five years and 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 said the proposed facility could strengthen Ghana’s energy security, reduce dependence on imported gas and expensive liquid fuels, and support industrial development.

The project is expected to expand domestic gas processing capacity beyond the existing Atuabo Gas Plant in the Ellembelle District of the Western Region.

Mr Lumor noted that Ghana’s reliance on gas supplies from Nigeria through the West African Gas Pipeline (WAGP), coupled with supply disruptions, had periodically forced thermal power plants to rely on more expensive imported liquid fuels.

He said the establishment of a second processing plant could help address these challenges by increasing the country’s capacity to process natural gas from offshore fields, including Jubilee, TEN and Sankofa.

According to the analyst, Ghana spends approximately US$1 billion annually on imported liquid fuels used for thermal power generation when gas supplies are insufficient. He added that the country could also recover more than US$150 million annually in potential value from gas that is flared or remains unprocessed.

Mr Lumor further indicated that the proposed plant could 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 25 September.

Beyond electricity generation, he said reliable and competitively priced gas could support manufacturing, industrialisation and other businesses that depend on stable energy supplies.

The project is also expected to create employment during construction and operation, with opportunities for engineers, technicians, maintenance personnel, logistics operators and local suppliers.

However, Mr Lumor cautioned that the anticipated benefits would depend on adequate financing, sufficient gas supplies, reliable transportation infrastructure and effective project implementation.

He therefore 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.

Mr Lumor further recommended stakeholder consultations to ensure transparency, encourage public participation and help local communities benefit from the investment.

The Steering and Technical Committee for the project was inaugurated on 12 May 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.

He stressed that the project’s success should ultimately be measured by its contribution to lower energy costs, reliable electricity supply, job creation and sustainable economic growth.

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