Second gas processing plant expected to save Ghana $1bn annually – Mahama

President John Mahama says Ghana is expected to save up to one billion dollars annually through the construction of its second gas processing facility, popularly known as GPP II.

He says the facility, located at Anochi in the Western Region, is expected to reduce the country's reliance on imported liquid fuels for power generation.

Speaking at the 2026 Petroleum Commission Local Content Conference and Exhibition in the Western Region, President Mahama said work has started on the project under the auspices of the Ministries of Energy and Green Transitions and Finance.

He stressed the importance of securing the necessary upstream investments to guarantee reliable domestic gas supplies over the long term.

He said, “Under the auspices of the Ministry of Energy and Green Transitions and the Ministry of Finance, work has started on the construction of a second gas processing facility, popularly referred to as GPP II.

"This facility is located at Anochi in the western region. The facility is expected to save Ghana up to about $1 billion a year by reducing our reliance on imported liquid fuels for power generation.”

President Mahama also called for greater participation of Ghanaian companies and workers in the country's oil and gas industry.He said the progress of the sector must be measured by the opportunities it creates for local businesses and the skills it develops among Ghanaian workers.

“Can more Ghanaian companies compete for complex contracts and deliver them to the required standard? Can young people here in the Western Region see a path from the classroom to skilled work in the oil and gas industry?” he asked.

The President urged operators to give qualified Ghanaian suppliers early information about upcoming contracts and incorporate training and technology transfer into their partnerships.

He also encouraged banks and other financial institutions to support credible local suppliers facing financing constraints that prevent them from undertaking larger contracts in the industry.

President Mahama further called on universities, technical institutions and professional bodies to work with industry players to ensure that training programmes reflect the skills employers require.

He said government would work to provide a stable and predictable investment environment, while the Petroleum Commission must ensure that operators and contractors meet established standards on safety, environmental protection and local participation.

The President said these measures would help protect communities living alongside the industry and sustain public confidence in its operations.

The GPP II project is designed to expand Ghana’s gas processing capacity beyond the current 120 million standard cubic feet per day (MMscfd) handled at the Atuabo Gas Processing Plant.