The country may have to cough up more than US$1billion for liquid fuel to keep its thermal power plants running in 2025, Minister for Energy and Green Transition John Jinapor has announced.
The range of fuel products include diesel, light crude oil and heavy fuel oil (HFO).
This development puts fresh pressure on the country’s energy infrastructure, hence the urgent need for a new gas facility to ease financial and operational strain on the sector.
Mr. Jinapor made the disclosure during inauguration of two committees – Technical and Steering – to lead construction of the second national gas processing plant (GPP2) in Accra recently.
According to the minister, this project is intended to provide a more cost-effective alternative to liquid fuel for electricity generation.
“Currently, we have a gas deficit of about 100 million standard cubic feet (MMscf). So, we are compelled to buy very expensive liquid fuel to fill that gap. It is in light of this that government has decided to build GPP2,” the minister explained.
It is expected that the country could save up to US$500million annually. This implies that the savings from using gas as an alternative to liquid fuel for power generation yearly can pay for the country’s second gas plant.
The construction of GPP2 is therefore deemed a strategic initiative in expanding Ghana’s gas infrastructure to meet growing domestic needs while reducing annual natural gas losses.
GPP2 among others will hopfully lead to increased gas consumption, availability of Liquefied Natural Gas (LNG) and Liquefied Petroleum Gas (LPG) as well as employment creation, both direct and indirect.
Minister for Finance Cassiel Ato Forson notes that the gas shortfall, among others, leaves the country with no choice but to buy liquid fuel to power thermal plants for power generation.
