Ghana plans to eliminate crude oil from its power generation mix within the next five years, President John Dramani Mahama announced Tuesday, signaling a strategic pivot toward natural gas as the country seeks to stabilize energy costs and attract new investment.

Speaking at the 2025 Africa CEO Forum, Mr. Mahama outlined a policy shift anchored by the construction of a second gas processing train, which will expand domestic gas handling capacity and reduce the country’s reliance on expensive, volatile crude oil imports for thermal power.

“Our current plant in Atuabo has reached capacity. With more gas expected to come online, we’re building a second train to process the volumes our infrastructure can’t currently handle,” Mr. Mahama said.

The decision comes as Ghana looks to manage long-standing inefficiencies and debt burdens in its power sector. Crude oil, though a staple in Ghana’s energy portfolio, has contributed to high operational costs and financial strain, particularly among independent power producers (IPPs).

Mr. Mahama noted that exploration activity by Italy’s ENI has resumed, with early indications pointing to significant new oil and gas finds. “If projections hold, we can completely eliminate crude oil from power generation within three to five years,” he said.

The president also pitched Ghana as a promising hub for upstream and midstream oil and gas investment, citing improved macroeconomic stability and an investor-friendly climate.

“The oil and gas sector was considered toxic—perhaps due to lack of prioritization by past governments,” he said. “But I’m rolling out the red carpet for any investor ready to drill and pump in Ghana.”

The proposed infrastructure expansion marks a renewed effort by the West African nation to balance fiscal recovery with energy sustainability, positioning gas as a transitional fuel in its broader economic revival.

Source:TheDotNews