Complete LNG Facility to Stabilise Power Supply, Cut Generation Costs – Dr Nii Darko Asante
Independent Energy Consultant, Dr Nii Darko Asante, has underscored the urgent need for the completion of Ghana’s Liquefied Natural Gas (LNG) import terminal to stabilise gas supply and reduce the cost of electricity generation.
Speaking during a panel discussion on the theme “Financing the Future: Tackling Legacy Debts and Building a Resilient Energy Economy” at the 14th Ghana Economic Forum in Accra on Wednesday, October 29, 2025, Dr Asante noted that the current shortage of natural gas has compelled the country to rely on more expensive liquid fuels to power thermal plants.
“We’ve recently had petrol prices increased by one cedi to cover the cost of these oil imports. The LNG import facility, which is about 80 to 90 percent complete, must be prioritised. Although LNG is more expensive than our domestic gas, it’s far cheaper than the liquid fuels currently being procured,” he stated.
He added that the completion of the facility would ensure stability in gas supply and enhance energy security, especially during maintenance shutdowns of domestic gas infrastructure.
“At the moment, when the gas stops, power plants have to shut down within hours. But with LNG, within minutes or seconds, you can inject gas to avoid disruptions,” he explained, stressing the need for the facility to be state-owned given its strategic national importance.
Dr Asante further called for a review of power purchase agreements (PPAs) for gas-powered plants nearing the end of their contractual terms. He observed that many Independent Power Producers (IPPs) continue to charge tariffs that include capital recovery costs even after full repayment.
“By the end of the PPA term, all capital charges should have been recovered. Beyond that point, generation costs should drop significantly — from about 10 or 11 cents per kilowatt-hour to as low as five or four cents,” he said.
He urged the Public Utilities Regulatory Commission (PURC) to strictly enforce its guidelines to ensure that consumers benefit from reduced tariffs once capital costs have been amortised.
Touching on ongoing tariff review processes, Dr Asante cautioned against focusing solely on affordability while neglecting the credibility of utility cost submissions.
“The real question should be whether those costs are real or inflated. We need to examine if utilities are spending responsibly and whether their performance in revenue collection truly reflects efficiency,” he emphasised.
Dr Asante concluded that transparent cost structures and credible performance assessments of utilities such as the Electricity Company of Ghana (ECG) are critical to ensuring a financially sustainable and resilient energy sector.
