The Centre for Environmental Management and Sustainable Energy (CEMSE) has thrown its support behind the government’s proposal to construct a new gas processing plant, emphasizing its potential to stabilize petroleum prices and strengthen Ghana’s energy sector.
The initiative, announced by Minister of Energy and Green Transition, John Jinapor, aims to supplement the existing Atuabo Gas Processing Plant amid rising power demands and energy supply constraints.
Speaking to Citi Business News, CEMSE Executive Director Benjamin Nsiah hailed the government’s decision, stressing that the timely completion of the plant could significantly reduce energy costs and enhance economic stability.
“If we can complete this processing plant within a specified timeline, it will significantly help stabilize petroleum product prices in the country,” Nsiah stated. “It will also lower the weighted cost of gas, making it cheaper than the current rates. If you compare the cost of gas in Nigeria, with its abundance of natural gas, it is far more affordable than what we are currently using to price end-user tariffs in Ghana.”
Nsiah further highlighted that Ghana flares approximately 17% of its natural gas, releasing large volumes into the atmosphere. He stressed that harnessing this gas efficiently could boost energy generation capacity and meet the country’s growing demand.
At a press conference on March 7, 2025, held at Jubilee House, Minister Jinapor confirmed cabinet approval for the project, in collaboration with the Finance Ministry.
“Cabinet has approved that, in partnership with the Finance Ministry, we take immediate steps to construct the second gas processing plant,” Jinapor stated.
The proposed facility is expected to:
- Address power shortfalls and reduce the frequency of outages
- Enhance national energy security and reliability
- Improve natural gas supply for power generation, ensuring a stable and cost-effective energy landscape
As Ghana works toward energy sustainability, stakeholders like CEMSE continue to advocate for policies and infrastructure that will strengthen the sector, reduce costs, and support economic growth.