Tuesday, 13 May

CEMSE lauds gov’t’s decision to build second gas plant

Business
Benjamin Nsiah

Energy analyst and Executive Director of the Centre for Environmental Management and Sustainable Energy (CEMSE), Benjamin Nsiah, has commended the government's decision to construct a second gas processing plant, describing it as a critical step toward improving Ghana’s energy mix and reducing waste in the natural gas sector.

Speaking in an interview on Accra 100.5 FM’s evening news on Monday, May 12, 2025, Mr. Nsiah emphasised that the move is long overdue, noting the country has been losing between $150 million and $200 million annually due to gas flaring.

“As a country, we cannot continue to waste our valuable natural resources.

Currently, we are injecting as much as $300 million worth of natural gas back into oil wells every year just to sustain crude production,” he said.

He added that this inefficiency is costing the nation in lost revenue and missed opportunities to lower electricity generation costs and stabilise the local currency.

Mr. Nsiah pointed out that thermal power generation accounts for about 80 percent of Ghana’s electricity supply, making the effective utilisation of natural gas essential to maintaining a stable and affordable energy system.

He also criticised Ghana’s continued dependence on gas imports from Nigeria, which he argued have proven unreliable.

"Relying on external sources has not been helpful.

It's time we take full control and make the most of our own natural gas resources," he stated.

 

Mr. Nsiah praised the recent joint announcement by the Ministry of Finance and the Ministry of Energy and Green Transition, which unveiled the implementation committee for the new gas plant.

He described the initiative as a major step toward energy independence, cost savings, and economic resilience.

Meanwhile, in a significant move toward enhancing Ghana’s energy independence and economic resilience, Finance Minister Dr. Cassiel Ato Forson joined Energy and Green Transition Minister John Abdulai Jinapor on Monday, May 12, to inaugurate the Implementation Committee for Ghana’s Second Gas Processing Plant (GPP II). 

The event, held at the Ministry of Energy, marks a key milestone in the government’s strategy to reduce reliance on expensive imported fuels and boost local gas infrastructure.

“This project is long overdue,” Dr. Forson stated, expressing concern over Ghana’s continued dependence on costly liquid fuels to power energy plants. 

He revealed that the country is projected to spend over $1 billion on such fuels this year alone, a cost he described as a burden on the economy and ordinary Ghanaians. 

“With this new Gas Processing Plant, we have the opportunity to save nearly $500 million and create over 1,000 jobs for our people,” he added.

Chaired by the Deputy Minister for Energy, the Implementation Committee has been tasked with developing a comprehensive plan for executing the project. 

Dr. Forson made it clear that delays will not be tolerated, stressing that “the time for bureaucracy is over.” 

He has given the committee a four-week deadline to finalise and present their implementation strategy, emphasising the urgency and national importance of the project.

Dr. Forson also highlighted the crucial role the existing Atuabo Gas Plant has played in supporting Ghana’s energy needs, expressing optimism that GPP II will deliver even greater benefits. 

“Atuabo Gas has been a lifeline for Ghana.

GPP II will be a game-changer for our energy security, economic stability, and national welfare,” he declared

Source: Classfmonline.com/Cecil Mensah