Ghana could use its planned liquefied natural gas (LNG) terminal in Tema not only to supplement domestic gas supplies but also as a base for serving neighbouring countries, the Ghana National Petroleum Corporation (GNPC) has said.
The terminal, which GNPC is developing with its partners, is expected to begin operations by the end of 2027 and will have the capacity to regasify up to 400 million standard cubic feet of LNG a day.
Deputy Chief Executive in charge of Finance, Commercial and Administration at GNPC, Hamis Ussif, said the facility could give Ghana room to import LNG when needed and distribute some of the gas to other countries in the sub-region.
He mentioned Togo, Benin, Côte d’Ivoire, Sierra Leone and Liberia as potential markets, particularly countries with limited access to natural gas.
Mr Ussif was speaking at the second Technical and Consultative Workshop organised by the Public Interest and Accountability Committee (PIAC) in Accra.
The workshop, held under the theme “Building a Resilient Gas Economy: Collaborative Strategies for Financial Equilibrium and Efficient Gas Value Chain,” brought together stakeholders to discuss the financial and operational challenges facing Ghana’s gas sector.
Adding another source of gas
The Tema facility will receive LNG in liquid form and convert it back into gas before it is supplied into Ghana’s gas network.
Mr Ussif said the gas could then be used by power producers and industries.
He said the facility could also be expanded as demand increases because LNG infrastructure can be scaled up by adding storage and pumping capacity.
GNPC is the off-taker under the arrangement, while Shell is expected to supply the LNG and LNG Terminal Company will operate the terminal.
The project is being developed under a Build, Own, Operate and Transfer arrangement. Mr Ussif said the facility would revert to GNPC after the 17-year contract period.
LNG could reduce reliance on liquid fuels
Imported LNG is expected to cost more than some of Ghana’s domestic gas supplies. Mr Ussif, however, said the comparison should also take into account the cost of the fuels Ghana would otherwise have to import when there is insufficient gas for power generation.
He said LNG could be cheaper than liquid fuels such as light crude oil (LCO) and heavy fuel oil (HFO), which are used when gas supplies are inadequate.
“If we don’t have that LNG, we will have to import more of liquid fuels, LCO, HFO, for use in power generation,” he said.
Apart from the cost implications, he said relying more heavily on liquid fuels would have greater environmental consequences.
GNPC pushing to increase domestic gas supply
The LNG project is being pursued alongside efforts to increase Ghana’s own gas production.
Mr Ussif said GNPC and its upstream partners were investing more than US$3.5 billion in exploration and production activities.
The investments are expected to increase gas production from Sankofa to about 350 million standard cubic feet per day, while Jubilee and TEN are expected to reach about 160 million standard cubic feet per day by 2028, he said.
As of September 21, the country’s three producing fields were supplying more than 409 million standard cubic feet of gas a day, according to GNPC.
Gas has become increasingly important to Ghana’s energy system. Mr Ussif said gas revenue reached US$952.38 million in 2025, representing 65.6 per cent of GNPC’s standalone revenue.
He also said natural gas contributed more than 90 per cent of thermal power generation, while thermal plants accounted for about 66 per cent of total electricity generation.
Keeping the gas business financially sustainable
Mr Ussif said increasing gas production would not by itself solve the sector’s problems.
He said Ghana needed a gas value chain in which production, processing, transportation and consumption worked together, supported by sound commercial arrangements.
GNPC, he said, was also seeking to lower the cost of gas through negotiations with producers and suppliers.
He cited recent negotiations involving the Jubilee, Sankofa and LNG arrangements, saying the savings achieved would be passed on to consumers. He put the saving from the Jubilee renegotiation at about 18 per cent.
He also pointed to GNPC’s early agreement under the Jubilee project to take the first 200 billion cubic feet of gas at no cost, which he said helped establish the foundation for Ghana’s domestic gas industry.
Beyond production
Mr Ussif said GNPC’s role as the national gas aggregator meant the corporation had responsibilities beyond securing gas from producers.
It must also help create the infrastructure and market conditions needed for the gas to be used, including supporting midstream and downstream projects.
He said the sector would need closer cooperation among GNPC, upstream companies, the Petroleum Commission, PIAC, Ghana Gas, the Energy Commission, PURC, WAPCo and gas off-takers.
For Ghana, the immediate challenge is to secure enough gas to support electricity generation and industry while keeping the cost of supply manageable.
The Tema LNG project is expected to provide another source of supply when domestic production is insufficient, while also giving Ghana the option of supplying gas to other markets in the sub-region.
That combination could make the terminal an important part of Ghana’s plans to secure gas supplies as demand for power and industrial energy continues to grow.
