Accra: Government is advancing a 100m scfd gas processing facility and a 1,200MW power plant to boost energy security, cut costs, and create jobs, Dr. Ato Forson has announced.
According to Ghana News Agency, during the presentation of the 2026 Mid-Year Budget Review to Parliament, Dr. Cassiel Ato Forson, Minister of Finance, revealed that the gas processing facility is being developed through a partnership between the Government and the private sector. Land acquisition for the project is complete, and environmental assessments, engineering designs, financial due diligence, and project structuring are currently underway.
Dr. Forson mentioned that the project would soon be submitted to Parliament for consideration, with financial closure anticipated before the end of 2026. The facility is expected to create nearly 1,000 jobs and generate approximately US$2 billion in benefits over the next five years through fuel savings, foreign exchange savings, taxes, levies, and dividends.
Regarding power generation, the Minister announced the development of a 1,200-megawatt state-owned combined-cycle gas-fired power plant at Kafodzidzi-Abrobeano in the Komenda-Edina-Eguafo-Abrem Municipality in the Central Region. Feasibility studies have confirmed the project's viability, with environmental, engineering, and permit processes progressing steadily.
According to Dr. Forson, the first phase of the power project, comprising 600 megawatts, is expected to be commissioned in 2028. The Government has secured the gas turbines directly from GE Vernova, achieving estimated savings of between 35 and 45 percent compared to acquiring the equipment through third parties.
The Minister stated that the power plant is projected to lower electricity generation costs, reduce electricity tariffs by between 10 and 20 percent, and create more than 2,000 direct and indirect jobs during the first phase. These projects are part of the Government's broader strategy to expand domestic energy infrastructure, improve efficiency in the power sector, and support sustainable economic growth.
Ghana has increasingly prioritized the utilization of its domestic natural gas resources to reduce reliance on imported liquid fuels for electricity generation, lower production costs, and enhance the reliability of power supply. Gas from the Jubilee, TEN, and Sankofa-Gye Nyame fields currently supports thermal power generation, while the country continues to pursue investments in gas processing, transmission, and power infrastructure to meet growing electricity demand.
These initiatives align with the Government's objective of strengthening energy security, improving fiscal sustainability in the energy sector, and promoting industrialization. The Ministry of Energy and Green Transition, along with state institutions such as the Ghana National Gas Company and the Volta River Authority, has consistently identified domestic gas infrastructure as a critical pillar of Ghana's long-term energy strategy.