CEMSE lauds gov’t’s decision to build second gas plant

Energy analyst Benjamin Nsiah praised the government's plan for a second gas processing plant. He called it a vital step for Ghana's energy mix and reducing waste in natural gas.

In an interview on Accra 100.5 FM, he noted that this decision is overdue. Ghana loses between $150 million and $200 million each year due to gas flaring.

Nsiah stated, "We cannot continue to waste our valuable natural resources." He mentioned that Ghana injects $300 million worth of natural gas back into oil wells annually to sustain crude production. This inefficiency leads to lost revenue and higher electricity costs.

Thermal power generation provides about 80 percent of Ghana's electricity supply. Therefore, effective use of natural gas is crucial for stable and affordable energy. Nsiah criticized the country's reliance on unreliable gas imports from Nigeria.

He said, "Relying on external sources has not been helpful." It's time for Ghana to utilize its own natural gas resources fully.

Nsiah also commended the recent announcement by the Ministry of Finance and the Ministry of Energy regarding the new gas plant's implementation committee. He viewed this initiative as a significant step toward energy independence and economic resilience.

On May 12, Finance Minister Dr. Cassiel Ato Forson and Energy Minister John Abdulai Jinapor inaugurated the Implementation Committee for Ghana’s Second Gas Processing Plant (GPP II). The event took place at the Ministry of Energy.

Dr. Forson described this project as long overdue. He expressed concern over Ghana's dependence on costly liquid fuels for energy plants. The country is expected to spend over $1 billion on these fuels this year alone.

"This cost burdens our economy and ordinary Ghanaians," he said. With GPP II, he believes they can save nearly $500 million and create over 1,000 jobs.

The Deputy Minister for Energy will chair the Implementation Committee, which must develop a comprehensive execution plan. Dr. Forson emphasized that delays are unacceptable, stating, "The time for bureaucracy is over."

He set a four-week deadline for the committee to finalize their strategy due to its urgency and national importance. Dr. Forson highlighted how crucial the existing Atuabo Gas Plant has been for Ghana’s energy needs.

He expressed optimism that GPP II will provide even greater benefits: “Atuabo Gas has been a lifeline for Ghana.” He concluded that GPP II will be transformative for energy security and economic stability in the country.