Keep Ghana Gas’ GPP Train 2 under state ownership – ASEC warns Government

The Africa Sustainable Energy Centre (ASEC) has called on the government to maintain full ownership of the planned second Gas Processing Plant (GPP Train 2) of the Ghana National Gas Company, warning that transferring the strategic facility to a private operator could threaten Ghana’s energy security and long-term economic interests.

In a statement signed by its Director of Research, Dr Elvis Twumasi, ASEC described any move to hand over GPP Train 2 to private ownership as a major strategic error rather than a normal commercial arrangement.

The policy think tank argued that keeping the facility under state control would help protect Ghana’s gas value chain, support reliable electricity generation and promote industrial growth.

According to ASEC, Ghana’s current energy supply structure places responsibility for providing fuel to thermal power plants on the state through tolling agreements with Independent Power Producers (IPPs), while Ghana Gas remains the country’s main processor and distributor of indigenous natural gas.

The Centre warned that introducing a private operator into this arrangement could create an additional profit-driven intermediary, potentially increasing fuel costs for power generation while leaving government to bear associated financial and structural risks.

ASEC also rejected suggestions that Ghana Gas is a suitable candidate for privatisation, describing the company as financially stable and operationally efficient.

It highlighted the performance of the Atuabo Gas Processing Plant, which it said has helped Ghana reduce dependence on imported light crude oil by enabling the use of locally processed natural gas, resulting in significant savings for the country.

Rather than privatising Ghana Gas, the Centre renewed its call for increased private sector involvement in the operations of the Electricity Company of Ghana (ECG), arguing that the utility’s financial challenges make it a more appropriate candidate for operational reforms and private investment.

ASEC maintained that GPP Train 2 should be considered a strategic national asset whose operations must align with Ghana’s broader development objectives rather than short-term commercial interests.

The Centre cautioned that private ownership of critical gas infrastructure could expose the country to additional risks, particularly during periods of economic instability, exchange rate volatility or financial stress.

It argued that a private operator focused primarily on profitability could suspend operations or seek higher tariffs under challenging economic conditions.

ASEC stressed that natural gas remains central to Ghana’s electricity generation and industrial transformation, insisting that ownership and control of key gas infrastructure must remain with the state to protect the country’s long-term energy security.

Prince Antwi

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