Energy Minister Calls for Urgent Shift to Gas-to-Power System
Energy Minister John Jinapor has emphasized the need for Ghana to transition from liquid fuels to a gas-to-power system to reduce costs and improve efficiency in the energy sector.
Speaking at the National Economic Dialogue on Tuesday, March 4, the minister described Ghana’s reliance on liquid fuel as financially unsustainable, highlighting its role in corruption and wastage.
“Finally, from what I am seeing, we immediately have to move into a gas-to-power era. The liquid fuel bills alone are about $1 billion this year. Half of that can build a gas processing plant that will save us about $600 million per annum. And so for me, that is something non-negotiable,” he stated.
Mr. Jinapor noted that despite Ghana’s significant gas reserves, the country continues to rely on expensive liquid fuel imports.
“We have stranded gas that we cannot use, yet we have to buy liquid fuel. We must bring that gas processing plant on and cut the cost. That will also cut corruption and cut the wastage,” he stressed.
His comments come at a time when Ghana’s energy sector is grappling with GH₵80 billion in outstanding liabilities. The minister warned that without urgent reforms, the sector risks collapse, as power producers struggle with shutdowns due to unpaid debts.
I am surprised the Hon. Minister of Energy is talking about high cost of liquid fuel. Tema Oil Refinery was built over 60 years ago. At that time crude oil was less than 9 dollars a barrel. What is the price of crude oil now.?. Our 1st President knew that Ghana would strike oil because of the proximity of Ivory Coast. Now we have crude oil and we are interested in selling it instead of feeding TOR. TOR needs private participation due the huge financial outlay and to reduce unnecesary interferences.Dangote has used all his life time savings to build a Refinery. why?