Second Gas Processing Plant to Save Ghana $1bn Annually – Mahama

President John Dramani Mahama has announced that Ghana expects to save up to $1 billion annually through the construction of its second gas processing facility, GPP II, which will reduce the country's reliance on imported liquid fuels for power generation.

Speaking at the 2026 Petroleum Commission Local Content Conference and Exhibition in the Western Region, the President said work has commenced on the facility at Anochi under the joint oversight of the Ministry of Energy and Green Transitions and the Ministry of Finance .

"Under the auspices of the Ministry of Energy and Green Transitions and the Ministry of Finance, work has started on the construction of a second gas processing facility, popularly referred to as GPP II," Mahama said. "This facility is located at Anochi in the Western Region. The facility is expected to save Ghana up to about $1 billion a year by reducing our reliance on imported liquid fuels for power generation" .

The GPP II project is designed to expand Ghana's gas processing capacity beyond the 120 million standard cubic feet per day currently handled at the Atuabo Gas Processing Plant . The Atuabo facility, commissioned in 2015, has seen its throughput rise from an average of 100 MMscfd to about 120 MMscfd, with technical capacity to handle up to 140 MMscfd .

The $1 billion savings projection aligns with earlier findings by the GPP II Implementation Committee, which reported in June 2025 that the project would also recover Natural Gas Liquids valued at approximately $151 million per year and generate over 2,500 direct and indirect jobs during construction and operation .

President Mahama stressed the importance of securing upstream investments to guarantee reliable domestic gas supplies over the long term, noting that Jubilee partners have committed $2 billion to bring in additional gas, while ENI is investing $1.5 billion .

Beyond the infrastructure, the President called for greater participation of Ghanaian companies and workers in the oil and gas industry, insisting that the sector's progress must be measured by the opportunities it creates for local businesses and the skills it develops among Ghanaian workers.

"Can more Ghanaian companies compete for complex contracts and deliver them to the required standard?" he asked. "Can young people here in the Western Region see a path from the classroom to skilled work in the oil and gas industry?"

He urged operators to give qualified Ghanaian suppliers early information about upcoming contracts and to incorporate training and technology transfer into their partnerships. He also encouraged banks and financial institutions to support credible local suppliers facing financing constraints that prevent them from undertaking larger contracts.

The President further called on universities, technical institutions and professional bodies to work with industry players to ensure that training programmes reflect the skills employers require.

He said government would work to provide a stable and predictable investment environment, while the Petroleum Commission must ensure that operators and contractors meet established standards on safety, environmental protection and local participation.

The GPP II project represents a critical piece of Ghana's energy security architecture. The country currently spends over $1 billion annually on liquid fuel to power thermal plants, an expense that Energy Minister John Abdulai Jinapor has described as a heavy burden on both the economy and ordinary citizens . The Finance Minister, Dr Cassiel Ato Forson, has previously described the new plant as a "game-changer" that will transform the country's energy landscape .