Ghana Saves $500m Annually as Rising Gas Supply Cuts Dependence on Imported Fuels

Ghana is saving about $500 million a year by replacing imported liquid fuels with natural gas for power generation, according to Energy and Green Transition Minister Dr John Abdulai Jinapor.

Jinapor said the shift had reduced Ghana's dependence on imported crude oil and other liquid fuels while improving the country's energy security.

He made the disclosure on Tuesday, August 18, at the launch of the Petroleum Commission's 15th anniversary celebrations.

The minister disclosed that increased gas availability had been central to the savings, as more gas is now being used to generate electricity that would previously have required imported fuels.

“The increase in gas availability has led to a saving of about $500 million a year in terms of crude oil gas substitution.”

Domestic gas is changing Ghana’s power economics

Jinapor stated that Ghana had previously been importing large volumes of crude oil and other liquid fuels to keep its power plants running.

The government has since focused on increasing domestic gas production, working with international and local industry partners, including ENI and the Jubilee partners.

“When we assumed office, we were importing so much crude oil and other liquid fuels,” he quoted.

According to the minister, the increase in gas production has reduced the need for those imports while providing a more reliable source of fuel for thermal power generation.

The development also gives Ghana greater room to manage its exposure to international oil prices and supply disruptions. With gas available locally, the power sector is less dependent on imported fuels whose costs can rise sharply when global energy markets tighten.

Jinapor reassured that the government would continue to maximise Ghana's petroleum resources while expanding renewable energy.

“We will maximise our petroleum resources whilst promoting renewable energy to complement that,” he said.

Oil production also rebounds to 126,000 bpd

The minister also pointed to a recovery in Ghana's upstream oil production, saying output had increased to about 126,000 barrels per day, from roughly 90,000 bpd.

He attributed the improvement to interventions aimed at resolving challenges affecting oil producers.

The increase in oil output, combined with higher domestic gas production, gives Ghana a stronger position across its petroleum and power sectors.

The government can immediately benefit from lower fuel import costs, but sustaining those gains will depend on maintaining domestic oil and gas production, expanding supporting infrastructure and accelerating renewable energy investment to strengthen Ghana’s long-term energy security.