The Centre for Environmental Management and Sustainable Energy (CEMSE) is backing the government’s proposal to build an additional gas processing plant, arguing that its timely completion could help stabilize petroleum prices in the country.

The Minister of Energy and Green Transition, John Jinapor, recently announced the government’s plan to construct a new gas processing facility to supplement the existing Atuabo Gas Processing Plant, with rising power demands increasingly strained.

In an interview with Citi Business News, Executive Director of the Centre, Benjamin Nsiah, praised the government’s initiative.

“If we can complete this processing plant within a specified timeline, it will significantly help stabilize petroleum product prices in the country,” Nsiah stated.

He added: “It will also lower the weighted cost of gas, making it cheaper than the current rates. If you compare the cost of gas in Nigeria, with its abundance of natural gas, it is far more affordable than what we are currently using to price end-user tariffs in Ghana.”

Nsiah further emphasized that Ghana flares around 17% of its gas, releasing large volumes into the atmosphere. He pointed out that harnessing this gas to power the energy sector is crucial for meeting growing demand.

The country’s energy sector has long struggled with a significant fuel deficit, contributing to frequent power outages and instability.

At a press conference on Friday, March 7, 2025, at the Jubilee House, Minister Jinapor revealed that following a recent cabinet meeting, the government had received approval to move forward with plans for the construction of the second gas processing plant.

“Cabinet has approved that, in partnership with the Finance Ministry, we take immediate steps to construct the second gas processing plant,” Jinapor confirmed.

The new plant is expected to address power shortfalls, enhance energy security nationwide, and improve the reliability of natural gas supply for power generation.