Ghana is saving approximately $500 million each year by using more natural gas to generate electricity instead of relying heavily on imported liquid fuels, Energy and Green Transition Minister, Dr John Abdulai Jinapor has disclosed.
According to the minister, increased gas supply has reduced the country’s need for crude oil and other expensive fuels used in thermal power generation.
Speaking at the launch of the Petroleum Commission’s 15th anniversary celebrations on Tuesday, August 18, Dr Jinapor said stronger gas production had delivered significant savings in the power sector.
He attributed the development partly to increased collaboration with operators, including partners in the Jubilee field and ENI.Dr Jinapor said Ghana had previously depended substantially on imported crude oil and other liquid fuels to meet its power generation needs.
However, he said efforts to expand domestic gas production had changed the situation, improving the country’s energy security while reducing exposure to international fuel prices.
The minister said government intends to continue maximising Ghana’s petroleum resources while increasing the contribution of renewable energy to the national energy mix.Dr Jinapor also announced an improvement in Ghana’s crude oil production, saying output has risen from about 90,000 barrels per day to 126,000 barrels per day.
He attributed the recovery to interventions aimed at addressing operational challenges affecting oil producers.
The minister said government would continue working with industry players to sustain growth in petroleum production while pursuing a broader transition towards cleaner energy sources.
He said the strategy is to make greater use of Ghana’s domestic gas resources for power generation while gradually expanding renewable energy capacity.
