Ghana Plans to Eliminate Crude Oil in Power Generation with Second Gas Processing Train – President Mahama
Abidjan, May 13, 2025 – President John Dramani Mahama has announced Ghana’s strategic plan to phase out crude oil from its power generation mix over the medium term, citing the need to reduce costs, improve efficiency, and promote cleaner energy.
Speaking at the 2025 Africa CEO Forum in Abidjan, the President said the initiative will be anchored by the construction of a second gas processing train, aimed at expanding Ghana’s domestic gas supply and capacity.
“We are going to build a second gas train which is going to handle more gas from our first field,” President Mahama stated. “Our current plant in Atuabo cannot handle the extra gas.”
Crude oil, once a mainstay in Ghana’s thermal power generation, has become increasingly unsustainable due to price volatility and high operational costs. The President noted that transitioning to natural gas would help alleviate the sector’s financial burden, particularly the rising debt owed to independent power producers (IPPs).
“ENI are back, they are drilling again, and early signs are that we might find considerable quantity of oil and gas. When that happens, we can eliminate crude oil in power generation completely in the next three to five years,” he said.
President Mahama also emphasized Ghana’s economic rebound, describing the macroeconomic environment as stable and promising for investment. He called on investors to explore opportunities in both upstream and midstream segments of the energy sector.
“The oil and gas sector was toxic. I don’t know for what reasons, but I think governments have not prioritised the sector. But I will lay a red carpet for anyone who wants to drill and pump in Ghana,” he declared.
With new commitments underway, Ghana is positioning itself as a regional energy hub, driven by reforms to enhance infrastructure, sustainability, and foreign investment in the oil and gas industry.
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