Ghana is taking a major step toward redefining its energy landscape, rolling out a set of reforms and investments the government believes will turn power from a national hurdle into a competitive advantage. The 2026 Budget lays out a clear ambition: reliable and affordable energy that supports industry, strengthens the 24-hour economy and creates jobs across the country.
At the centre of this plan is a shift to natural gas as the main fuel for power generation. Government officials say the gas-to-power strategy is already gaining traction and will sharply cut the cost of producing electricity. Estimates suggest a reduction of at least 75 percent, a change expected to ease the financial strain on the power sector and improve energy security.
That shift has been helped by new activity offshore. In July 2025, the Offshore Cape Three Points partners, led by ENI, completed a processing upgrade that pushed capacity from 240 million to 270 million standard cubic feet of gas per day. Production from the Jubilee and TEN fields has also climbed, rising from about 110 million to roughly 130 million standard cubic feet per day.
The government has also locked in extra supply. OCTP partners have agreed to deliver an additional 80 million standard cubic feet per day, while the Jubilee partners will boost output by another 70 million. With this new volume coming onstream, authorities are moving ahead with plans for a second gas processing facility, GPP 2, to ensure the country can offtake and use all available gas.
The expanded gas supply sets the stage for one of the government’s biggest projects yet: a 1,200-megawatt state-owned thermal power plant scheduled to begin construction in 2026. The plant will run on the extra 150 million standard cubic feet of gas now being secured from Ghana’s offshore fields. Officials say the project will help deliver steady and affordable electricity for households and businesses while strengthening long-term energy stability.
While Ghana builds up its gas infrastructure, it is also turning attention back to the oil sector, which has seen production decline steadily in recent years. Output has fallen from 71.4 million barrels in 2019 to an expected 36 million in 2025. The government says reversing this trend is a priority and is already seeing signs of renewed investor interest.
More than US$3.5 billion in new commitments have been secured so far this year. These include a US$2 billion agreement to drill 20 new wells in the Jubilee and TEN fields and a US$1.5 billion memorandum with the OCTP partners to widen their operations. Interest from major players such as Shell suggests confidence is returning to Ghana’s upstream sector.
GNPC is also preparing for a new phase of exploration. The national oil company plans to drill in the offshore Voltain Basin in October 2026, with early studies pointing to promising prospects.
To support all this activity, the government is reviewing the regulatory and fiscal framework for oil and gas. The aim is to create a stable and transparent environment that encourages long-term investment and supports Ghana’s broader economic goals.
Taken together, these reforms and projects mark one of the most significant overhauls of Ghana’s energy sector in years. Officials believe the combined impact will help turn the energy system into a catalyst for growth, powering industry, supporting communities and driving the country’s economic transformation.
Story by Doe Benjamin Kofi Lawson