Minister of Finance Dr Cassiel Ato Forson has announced that Ghana will commence construction of a 1,200-megawatt state-owned thermal power plant in 2026 as part of efforts to secure reliable, affordable energy and accelerate the country’s gas-to-power transition.

Presenting the 2026 Budget to Parliament on Thursday, November 13, 2025, Dr Forson said the project will significantly enhance energy security and provide stable electricity for economic growth.

He explained that Ghana’s long-term strategy is to shift from expensive light crude oil to cleaner, domestically produced natural gas. Over the past 10 months, gas production has risen by more than 50 million standard cubic feet per day following expansions by the Offshore Cape Three Points (OCTP) partners and the Jubilee and TEN fields. Government expects new agreements to deliver an additional 150 million standard cubic feet per day, ensuring a steady fuel supply for the upcoming thermal plant.

To support the increased gas output, work is being accelerated on the Ghana Gas Processing Plant (GPP-2). When completed, combined output from Jubilee, TEN and OCTP is projected to reach 1,150 million standard cubic feet of gas daily—enough to generate up to 1,200 megawatts of power, exceeding the current capacity of the Akosombo Dam.

Dr Forson said the new plant will play a key role in securing Ghana’s long-term energy future, improving efficiency, and supporting inclusive growth.

He also outlined measures to reverse the decline in oil and gas production, which has dropped from 71.4 million barrels in 2019 to 36 million barrels in 2025. Investor-friendly policy reforms, he noted, have already attracted more than $3.5 billion in new commitments from operators in the Jubilee, TEN, and OCTP fields.

In addition, the Ghana National Petroleum Corporation (GNPC) is expected to begin drilling in the offshore Voltaian Basin in October 2026. Government initiatives will also prioritize rural electrification, urban power expansion, and broader access to electricity to advance Ghana’s 24-hour economy agenda.