File photo of a gas pipeline
The Centre for Environmental Management and Sustainable Energy (CEMSE) has stated that the construction of an additional gas processing plant will significantly contribute to stabilising the price of natural gas and its weighted cost.
According to the Centre, this government initiative is not only timely in terms of operations but also has the potential to stabilise the prices of petroleum products in the country.
The Minister of Energy and Green Transition, John Jinapor, recently announced the government’s plan to construct a new gas processing facility to supplement the existing Atuabo Gas Processing Plant, as rising power demands continue to exert pressure on the current infrastructure.
At a press conference on Friday, March 7, 2025, at the Jubilee House, John Jinapor revealed that, following a recent cabinet meeting, the government had received approval to proceed with plans for the construction of a second gas processing plant.
“Cabinet has approved that, in partnership with the Finance Ministry, we take immediate steps to construct a second gas processing plant,” Jinapor stated.
In an interview with GhanaWeb Business, the Executive Director of the Centre, Benjamin Nsiah, praised the government’s initiative, stating that Ghana would have full capacity to supply its own natural gas to the TMR plants once the pipeline is fully constructed.
“When we construct a new gas processing plant, it means that we may no longer need to access natural gas from Nigeria. Instead, Ghana will have full capacity to supply its own natural gas to the TMR plants. This will significantly reduce the weighted cost of gas, which will, in turn, lower end-user tariffs,” Nsiah explained.
He further elaborated, “If we are able to complete this gas processing plant within the shortest possible time, our weighted cost of gas is likely to decrease from the current $8 per British TMR unit to around $6 or possibly $5 per British TMR unit. This will positively impact electricity prices, especially if the cedi remains stable and inflationary pressures ease.”
“In the long run, the price of electricity is likely to decrease if we complete this processing plant as soon as possible. Ghana will then have the full capacity to supply its own natural gas to the TMR plants,” he added.
SP/MA
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