Ghana’s gas production is expected to see a significant boost in the coming years following a new agreement between the government and key oil and gas partners, including Jubilee, TEN (Tweneboa, Enyenra, Ntomme), and Sankofa partners.
The deal, which extends the operating license for these fields to 2040, is projected to enhance local gas availability and reduce the country’s reliance on imports.
Executive Director for the Center for Environmental Management and Sustainable Energy, Benjamin Nsiah, welcomed the development, describing it as “a big step toward energy affordability and independence.”
“This is exactly what Ghana needs,” Mr. Nsiah said. “If you look at the importation of gas from Nigeria for power generation, the longer distribution chain makes it more expensive. But with increased domestic availability, we reduce our reliance on emergency fuels, which lowers our cost of power generation and ultimately leads to cheaper tariffs for the end user.”
Currently, Ghana produces around 250 million standard cubic feet of gas per day, and the new deal is expected to increase this by an additional 130 million standard cubic feet daily.
“If we are likely going to get an additional 130 million standard cubic feet per day in the near future, it supports our domestic power production without even needing imports,” Mr. Nsiah explained. “It also allows us to export some of the gas to our neighboring countries, generating more revenue for the country.”
Projecting that the development will transform Ghana’s Liquefied Petroleum Gas (LPG) sector, he noted that “Today, only about 50% of our LPG comes from domestic sources. If this increases to 100%, the cost of LPG will go down significantly, which aligns perfectly with the government’s agenda to promote clean cooking energy at the household level.”
According to Mr. Nsiah, the expected gas boost not only ensures greater energy security but also positions Ghana to become a regional energy exporter while improving economic stability through reduced fuel costs and increased government revenue.
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