Ghana: GPP2 Deal Must Prioritise Gas Supply And Technical Merit Over Politics, ACEP Warns Gov’t

The Africa Centre for Energy Policy (ACEP), a policy think tank in Ghana, has urged the government to base decisions on Ghana’s proposed second Gas Processing Plant (GPP2) on reliable gas supply, credible financing, and proven technical capacity rather than political considerations.

According to ACEP, while the project has the potential to strengthen Ghana’s energy security, reduce gas flaring, and improve fuel supply for thermal power generation, its success will depend on whether the country can secure sufficient gas volumes, attract sustainable financing, and ensure the project is executed by technically competent partners.

ACEP stressed that discussions surrounding GPP2 should focus on the country’s long-term national interest rather than political preferences, warning that infrastructure of such strategic importance requires careful planning and transparent decision-making.

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The policy institute noted that Ghana’s existing Atuabo Gas Processing Plant has played a significant role in supporting domestic power generation, but growing demand for natural gas makes additional processing capacity necessary.

However, ACEP cautioned that expanding processing infrastructure without guaranteed gas supply commitments could leave the new facility underutilised and undermine its commercial viability.

“Building a gas processing plant without secured volumes risks creating an expensive, underutilised asset,” Kodzo Yaotse, Head of Petroleum and Conventional Energy at ACEP, said in an interview monitored by this portal.

He also emphasised that financing arrangements must be transparent and sustainable to avoid placing unnecessary financial burdens on the country.

ACEP recommended integrating upstream petroleum partners, including operators of the Jubilee Field and adjacent fields, into the financing structure to help guarantee feedstock supply.

The organisation further argued that technical capability should be a key criterion in selecting any partner for the project. It added that the overriding objective should be to ensure GPP2 delivers value for money while strengthening Ghana’s gas-to-power strategy and overall energy security.