The Ghana National Gas Company Limited (Ghana Gas) will construct a 278-kilometre, 20-inch high-pressure gas pipeline from the Western Region to Tema. This significant infrastructure project aims to expand the country’s gas supply network. It will also support industrial development across Ghana.
This new pipeline is crucial for reducing Ghana’s reliance on the existing West African Gas Pipeline. It will connect industries in the Western, Central, Eastern, and Greater Accra regions directly to the national gas network. Ms. Judith Adjobah Blay, Chief Executive Officer of Ghana Gas, announced this plan at a media event in Accra. The company targets the end of 2026 to make a final investment decision on the pipeline project. This timeline underscores the strategic importance of the project for national energy security and economic growth.
This initiative aligns with Ghana's broader strategy to enhance its energy independence and industrialisation efforts. The country has been working to leverage its domestic gas resources to power its economy. Previous investments in gas processing facilities, such as the Atuabo Gas Processing Plant, demonstrate this commitment. Expanding the pipeline network will further integrate these domestic resources into the national energy grid. This move is expected to stabilise energy costs for industries and reduce foreign exchange outflows associated with gas imports.
Ms. Blay also revealed that Ghana Gas’s gas processing capacity has increased significantly. It rose from 100 million standard cubic feet per day to 130 million standard cubic feet per day. This 30 million standard cubic feet per day increase directly supports electricity generation and various industrial activities. Furthermore, the company’s profit grew by 97%. However, the appreciation of the Ghana cedi against the US dollar reduced the local currency value of its dollar-denominated revenue. This highlights the impact of currency fluctuations on state-owned enterprises with international earnings.
Ghana Gas is also preparing to commercialise pentane and isopentane recovered at its Atuabo facility. This commercialisation effort is expected to reduce gas flaring, which is the burning of excess gas, and generate additional revenue for the company. Reducing gas flaring has environmental benefits, aligning with global sustainability goals. The company has also established an Environmental, Social, and Governance (ESG) department. This department aims to strengthen environmental protection, improve community welfare, and promote responsible operations. These steps reflect a growing commitment to sustainable practices within Ghana's energy sector.
The company plans to procure a third compressor to improve operational efficiency and minimise disruptions during maintenance. The procurement process is nearing completion, with construction expected to take about 18 months. This investment will enhance the reliability of gas supply. It will ensure consistent delivery to power plants and industrial users. Consistent gas supply is vital for maintaining stable electricity generation and supporting manufacturing output. Uninterrupted energy supply is a key factor for attracting and retaining industrial investments in Ghana.
The President of the Ghana Journalists Association (GJA), Mr. Albert Kwabena Dwumfour, commended Ghana Gas for its efforts. He praised the company for supporting journalists' professional development through specialised training in energy reporting. Such initiatives are crucial for ensuring accurate and informed public discourse on complex energy sector issues. Journalists play a vital role in explaining technical operations and holding institutions accountable. This collaboration helps bridge the knowledge gap between technical experts and the public.
The planned 278-kilometre pipeline represents a major step in Ghana's energy infrastructure development. It will significantly impact industrial growth, energy security, and the national economy. Decision-makers and markets will closely watch the final investment decision by the end of 2026. The successful implementation of this project could unlock new economic opportunities. It could also further solidify Ghana's position as a regional energy hub. The project's progress will be a key indicator of Ghana's commitment to long-term industrial expansion and energy self-sufficiency.