The Africa Centre for Energy Policy (ACEP) has stressed the need for swift action in securing funding for Ghana’s second gas processing plant to ensure a stable fuel supply for power generation.
Kodzo Yaotse, Policy Lead for Petroleum and Conventional Energy at ACEP, noted that gas flaring has been on an upward trajectory over the past five years, leading to significant economic losses.
He warned that without adequate gas processing infrastructure, Ghana will continue to rely on expensive and environmentally harmful liquid fuels to meet its energy needs.
“There are also the consideration around how we secure funding for a second gas processing facility to provide security of fuel supply for power generation especially when you consider that we have been flaring gas on an increasing trajectory over the last 5 years.
“If you look at the economic cost of the gas that is being flared and the fact that there are fuel supply challenges that we have to every now and then be going to liquid fuels which are more expensive and also bad for the environment, then we have to quickly secure funding for that [gas processing plant] as well,” Yaotse stated in an interview with Citi Business News.
He highlighted the economic impact of gas flaring, stressing that the government must prioritize investment in gas processing to reduce waste and enhance energy security.
The government recently announced plans to construct a second gas processing plant, a move ACEP has welcomed. However, the think tank insists that funding must be secured promptly to maximize the benefits of the project.