Finance Minister Dr Ato Forson has provided more information about government already announced plans to build a new gas plant in addition to the Ghana National Gas Plant situated at Atuabo in the Western Region.
The project is a joint partnership between government and the private sector. The gas processing plant when completed will produce some 100 million standard cubic feet per day modular gas.
Presenting the Mid-Year Budget Review in Parliament today, Thursday, July 2023, the Minister disclosed that land acquisition has been completed while environmental assessment, engineering design, financial due diligence, and project structuring are underway.
When completed, he said details of the document will be submitted to Parliament for consideration.
Revealing more details of the project, Dr Forson said the gas processing plant is projected to create nearly 1,000 jobs and generate about $2 billion in benefits to the state over the next five years through fuel savings, foreign exchange savings, taxes, levies, and dividends when it is completed.
Additionally, government is also looking forward to construct 1, 200 megawatt state-owned combined cycle gas-fired power plant at Kafodzidzi at Abrodaano in the in the Komenda Edina Eguafo Abirem Municipality in the Central Region.
Feasibility studies have been completed and according to the Finance Minister, it is confirmed that the project is viable “with environmental engineering and permitting processes progressing steadily. The first 600 megawatt phase is expected to be commissioned in 2028”.
It is the expectation of government that the first phase of 600 megawatt will be commissioned in 2028.
He, in the presentation, disclosed that, government in its quest to save cost secured the trubines directly from GE Vernova. This singular action apparently helped save between 35% and 45% compared to acquiring them through a third-party procurement.
“The project will lower electricity generation costs, help reduce electricity tariff by 10% to 20%, and create more than 2,000 direct and indirect jobs during the first phase”, he said.
In a related development, Dr Forson said while crude oil production declined sharply from 71.4 billion barrels in 2019 to about 36 million barrels in 2025, the government has reversed the situation.
He said this happened through the introduction of investor-friendly reforms that have ensured that Ghana secures more than $3.5 billion in new investment commitment from the Jubilee and OCTP partners, indicating that these reforms are yielding results.
“Oil production has exceeded expectations this year, with Jubilee increasing from a projected 68,000 barrels to about 95,000 barrels per day. While Sankofa is now producing about 28,000 barrels per day. Gas production has also increased from 245 million to about 282 million standard cubic feet per day”.
He said a new agreement with the OCTP partners is expected to increase gas production further to 350 million standard cubic feet per day adding that government is also updating the laws governing the upstream petroleum sector to make Ghana more attractive for investment, with a proposed amendment to be submitted to this Parliament before the year ends.
By Gifty Boateng