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Mahama Unveils Plan to Transition Ghana’s Power Sector from Crude Oil to Natural Gas

by Mohammed Kabore
May 14, 2025
in News, Top Story
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Abidjan, Côte d’Ivoire – May 14, 2025

President John Dramani Mahama has announced Ghana’s ambitious plan to phase out crude oil in power generation, pivoting instead toward expanded use of natural gas through strategic infrastructure development.

Speaking at the 2025 Africa CEO Forum in Abidjan, Mahama revealed that the government will construct a second gas processing train to boost domestic gas capacity and enhance energy efficiency.

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The new infrastructure is expected to complement the existing Atuabo Gas Processing Plant, which is currently unable to handle the increasing volumes of natural gas from offshore fields.

“We are going to put more gas on stream, so we need a second train because our current plant in Atuabo cannot handle the extra gas,” Mahama stated.

The President underscored that transitioning to natural gas will reduce the financial strain on Ghana’s energy sector, which has long been burdened by high operational costs and significant debt owed to independent power producers (IPPs).

Highlighting recent developments in exploration, Mahama added, “ENI are back, they are drilling again, and early signs are that we might find a 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.”

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He also pointed to Ghana’s economic recovery, citing macroeconomic stability and an improved investment climate.

Mahama called on investors to partner with the government in scaling up oil and gas infrastructure to sustain long-term growth.

“The oil and gas sector was toxic… But I will lay a red carpet for anyone who wants to drill and pump in Ghana,” he said, emphasizing the country’s readiness for upstream and midstream investment opportunities.

With this policy shift, Ghana is positioning itself to build a more resilient, cost-effective, and environmentally sustainable power sector—while unlocking new avenues for foreign investment and industrial growth.

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