Siena:Ghanaian consumers might see more stable electricity tariffs as a result of a $600 million upgrade to the Sankofa offshore gas facility, which is expected to boost domestic gas supply and lessen the reliance on costly liquid fuels for power generation.
According to Ghana Web, the actual benefits for consumers will depend on Ghana's ability to expand its gas processing infrastructure in time to manage the increased gas volumes. The impact of the increased use of Sankofa gas on the weighted average cost of gas (WACOG) used by the Public Utilities Regulatory Commission (PURC) in setting electricity tariffs will also be a determining factor.
Yinson Production, under a contract amendment signed on October 2, 2026, will install new gas compression and treatment modules at the Sankofa field, operated by Italian energy company Eni. This $600 million project aims to boost gas export capacity from 210-220 million standard cubic feet per day (MMscf/d) to 355 MMscf/d by the first quarter of 2028, while also extending the vessel's lease period by four years to 2036.
The additional gas supply could reduce the need for thermal power plants to switch to more expensive fuels during shortages, thus helping to contain generation costs, foreign exchange expenditure, and pressure on electricity tariffs. However, significant reductions in consumer bills are not assured, as the development and infrastructure costs for Sankofa's non-associated gas differ from those of associated gas from fields like Jubilee, which could influence the national WACOG.
Ghana's Atuabo Gas Processing Plant, Train 1, currently has a peak capacity of 150 MMscf/d and operates at about 120 MMscf/d, processing associated gas from Jubilee and Tweneboa-Enyenra-Ntomme (TEN) fields. To manage the additional Sankofa output, the Ghana National Gas Company is developing a second processing facility, Train 2, at Atuabo. Train 2 will initially process 150 MMscf/d, with the potential to scale up to 300 MMscf/d, using turbo-expander technology to improve natural gas liquids recovery.
The combined processing capacity of both plants will be 450 MMscf/d, with the project estimated to cost between $700 million and $812 million, financed through public-private partnerships, including support from the Africa Finance Corporation. The improved recovery from Train 2 is expected to reduce LPG imports and save over $151 million annually in natural gas liquids losses.
Both the Sankofa expansion and the development of Train 2 aim for completion before the first quarter of 2028. Timely commissioning of Train 2 is crucial to handle the increased gas supply, as delays could lead to bottlenecks and potential gas flaring. If completed on schedule, these investments could enhance fuel security, reduce dependency on imported oil prices, and improve the predictability of power generation costs, offering consumers protection against sharp tariff increases rather than substantial reductions in electricity bills.