Government has announced new measures to strengthen Ghana’s energy sector, including tighter petroleum product monitoring, increased gas supply for power generation and investments aimed at reducing electricity generation costs.
Presenting the 2026 Mid-Year Budget Review in Parliament, Finance Minister Dr. Cassiel Ato Forson said government will introduce stricter controls in the petroleum downstream sector through mandatory bank guarantees for refined petroleum product lifting and electronic tracking of product movement.
The measures, he said, will ensure that petroleum products are distributed only through approved systems while reducing smuggling and revenue leakages.
Gas-to-Power Strategy Delivers Savings
The Finance Minister disclosed that government’s gas-to-power strategy has resulted in significant savings, following increased gas supply for electricity generation.
By the end of June 2026, gas supply to the power sector had increased by an additional 35 million standard cubic feet per day, bringing total supply to about 490 million standard cubic feet per day.
According to Dr. Forson, the shift from light crude oil to natural gas helped government save approximately GH¢3 billion ($268.8 million) in fuel costs during the first half of 2026.
Oil and Gas Production Increase
He further announced that reforms in the upstream petroleum sector have attracted more than $3.5 billion in new investment commitments from Jubilee and OCTP partners.
Oil production from Jubilee has increased to about 95,000 barrels per day, while Sankofa production stands at approximately 28,000 barrels per day.
Gas production has also risen from 245 million to about 282 million standard cubic feet per day, with further increases expected from new agreements with OCTP partners.
New Power Plant Development
Government is also progressing with plans to develop a 1,200-megawatt state-owned combined-cycle gas-fired power plant at Kafutizi, Aburubano in the Komenda Edina Eguafo Abirem Municipality.
The first 600-megawatt phase is expected to be commissioned in 2028, with government securing gas turbines directly from GE Vernova to achieve estimated savings of between 35 and 45 percent.
The project is expected to lower electricity generation costs and create more than 2,000 direct and indirect jobs during its first phase.