Ghana plans to end purchases of liquid fuels for power generation from 2027 as gas supplies increase. Minister of Energy and Green Transition John Jinapor told African Energy Week that purchases of cargoes for power plants had already been reduced from eight to two. The shift towards domestic gas and Nigerian imports is intended to lower the energy bill and limit the country's exposure to costly fuels.
The government says replacing some diesel and heavy fuel oil with gas has saved around $500 million in one year. This advantage matters in a country where electricity demand is growing by around 10% annually. But the outcome will depend on reliable supply, power plant availability and the grid's ability to meet peak consumption.
Gas at the heart of the electricity system
Ghana's plan prioritises processing locally produced gas for electricity generation, followed by industrial supply. The country also imports gas from Nigeria through the West African Gas Pipeline. According to the minister, Ghana expects to double imported volumes under existing agreements. These flows can strengthen energy security, but depend on functioning infrastructure, payments and suppliers' available production.
A 278-kilometre pipeline is under construction to connect Ghana's main power centres. The aim is to deliver gas more efficiently to power plants and reduce transport constraints. Grid infrastructure is as essential as gas volumes: a plant can receive fuel without providing stable electricity if transmission lines, substations or distribution systems are inadequate.
The country also highlights a levy on fuel at the pump to finance LPG adoption, targeting 50% penetration within three years. This policy extends gas use beyond electricity by seeking to offer a more accessible cooking solution. Success will depend on equipment costs, cylinder and distribution-point availability, and households' ability to afford initial expenses.
Energy security requires a regional balance
Discussions at the forum stressed that gas exports and domestic supply should not be viewed as opposing objectives. For Senegal, where LNG exports began in 2025, Energy Minister El Hadji Abdourahmane Diouf spoke of the need to guarantee volumes for the national economy. The country targets domestic supply of around 150 million standard cubic feet per day by 2030, delivered through a pipeline network to power plants and industries.
GECF official Philip Mshelbila presented exports as a way to mobilise revenues and investment, while domestic use can increase local economic value. The aim is to plan both markets together: export contracts can finance infrastructure, but domestic obligations must be established and protected rather than depending on volumes remaining after international sales.
Data presented at the forum indicate that only around 3% of gas marketed in Africa is traded within the continent. The low level of regional trade reflects inadequate pipelines, storage, contract coordination and payment systems. Countries can improve market resilience by connecting networks and harmonising transit tariffs, but these projects require political cooperation and shared governance.
The transition must deliver affordable energy
Ghana's shift towards gas-fired power plants aims to replace liquid fuels and control generation costs. The climate benefit will depend on actual emissions reductions and methane management throughout the chain. Gas emits less carbon dioxide than fuel oil or coal during combustion, but leaks and flaring can diminish this advantage. Investment in emissions measurement and control will therefore be necessary.
Public officials must also avoid creating a new dependence on a single source through the fuel switch. Gas development must be accompanied by renewable capacity, storage, energy efficiency and regional interconnections. A more diversified system can better withstand supply interruptions, price changes and climate events.
Demand growth, the envisaged doubling of imports and pipeline construction require rigorous financial and contractual planning. Purchase agreements must match power plants' needs and grid capacity. The challenge is to reduce costs without increasing public commitments beyond what the economy can absorb.
The ambition announced in Cape Town will be assessed against purchases actually eliminated, savings realised and electricity service quality. If gas access is reliable and infrastructure progresses, Ghana can reduce liquid fuel purchases while supporting industry. If contracts or networks are delayed, power plants risk remaining dependent on costly emergency solutions.