- Ghana has over 17 oil and gas projects that are in the pipeline for investments in the next three years.
- Some of the main projects are the Jubilee South East Project, which is under development by British oil and gas explorer Tullow Oil.
- The country is spearheading plans to attract new investments for renewable energy projects as it steps up the share of renewables to 10% by 2030.
Ghana’s oil and gas sector boasts of over 600 million barrels of proven reserves, and is fast positioning itself as a magnet for foreign investors seeking to tap into its energy industry.
The country’s energy wealth, which also includes 0.8 trillion cubic feet of gas, is equally unveiling a myriad of lucrative investment opportunities in renewable energy that foreign investors can tap into as well.
Proceeds from these investments would play a critical role in propelling the country to achieve its goal of universal access to electricity by 2030 while at the same time powering its industrialization efforts.
During the upcoming African Energy Week (AEW): Invest in African Energy 2024 conference, Matthew Opoku Prempeh, Ghana’s Minister of Energy, is expected to delve deep into demonstrating the nation’s investment avenues while wooing foreign investors into the country’s oil and gas sector.
Set for 4-8 November this year, the AEW conference in South Africa will see Ghana get in touch with foreign investors keen on emerging projects across Africa.
Every year, the AEW offers an opportunity for financiers, government officials from across Africa, and project leaders to explore and strike agreements that help take forward development in the continent’s energy industry.
Ghana’s Oil and gas sector potential – an overview
While Ghana started extraction of its oil in 2010 following the discovery of oil in commercial volumes in the Jubilee Field in 2007, continued exploration shows that the country has over 17 oil and gas projects that are in the pipeline for investments in the next three years.
The discovery of oil ushered in a new era of growth, attracting international oil majors including Italian Giant Eni, British multinational Tullow Oil, and US-based Kosmos Energy.
The country of 34.6 million people also harnesses its oil wealth through the Ghana National Petroleum Corporation, Anadarko Petroleum Corporation, Occidental Petroleum as well as Springfield Group, which is a coalition of global players.
Ghana’s 17 oil and gas projects provide investors with the availability of large-scale oil and gas projects that could start earning value in a couple of years.
Some of the main projects are the Jubilee South East Project, which is under development by British oil and gas explorer Tullow Oil. This project is designed to expand the Jubilee Field project and extend its operational life by among others: drilling more wells, installing new production infrastructure, and integrating modern technologies in the industry to advance its recovery rates.
Also in the pipeline for further investments is the Pecan Conventional Oilfield developed by global energy firm Aker Energy, the Ghana National Petroleum Company (GNPC), Russian multinational oil and gas company Lukoil and maritime engineering and energy company Bulk Ship & Trade, and the Ntomme Far West Development.
On the downstream side, Ghana has several projects under development currently. For instance, the GNPC is spearheading a $700 million gas processing plant at Atuabo to facilitate the transportation of over 150 million cubic feet of gas per day.
Officially known as the Atuabo Gas Processing plant, this investment is designed to process natural gas into cleaner fuels for power generation and larger industrial use. In particular, it seeks to process methane, butane, ethane, propane, and gasoline gas which are critical in cutting Ghana’s reliance on imported oil. This project is expected to unlock lucrative opportunities across the gas value chain.
Additional projects include the $380 million Tema V1 Oil Storage Facility, which is developed by Sentuo Oil Refinery Ltd; Helios Investment Partners’ $350 million Tema Floating LNG facility; and the Bulk Oil Storage and Transportation Company’s $71 million Tema-Akosombo 11 Pipeline. All of these developments have the opportunity to contribute immensely to Ghana’s infrastructure expansion.
In the meantime, Ghana is actively working to enhance its policies to create a more favourable environment for foreign and private sector involvement in the business. For instance, last year, the country launched the Ghana Energy Transition and Investment Plan. This is a $350 billion initiative that seeks to achieve carbon neutrality by 2060.
Ghana Energy Transition and Investment Plan are modelled along plans to promote low-carbon uptake, especially within the country’s oil, gas, transport, and cooking gas industries. Further, the scheme seeks to enforce measures that are set out in the Gas Master Plan.
Ghana’s Gas Master Plan is a roadmap that defines the growth of the gas market, including maximizing the use of gas resources to step up grid security while also increasing the number of consumers accessing clean cooking options.
“As regulatory reform makes the market increasingly attractive, Ghana has emerged as one of Africa’s most promising oil and gas plays. The country’s commitment to developing its gas resources through the Gas Master Plan further underscores a commitment to an industrialized future,” states NJ Ayuk, the Executive Chairman of the African Energy Chamber.
Read also: IMF: Ghana’s economic transformation journey from crisis to prosperity
Ghana increasing use of renewables to 10% by 2030
At the same time, Ghana is spearheading plans to attract new investments for renewable energy projects, seeking to raise the percentage share of renewables in her energy mix to 10 per cent in the next six years.
So far, some of the milestones scored include the ministry’s February nod to Ghan’s largest solar energy plant – the 16MW Tema PV project – that is being undertaken by Sungrow and financed by the International Finance Corporation.
Additionally, in August 2022, Ghana commissioned a $480 million, 13KW solar facility in Kaleo. To add on, Ghana has set an ambitious goal of generating 30 per cent of its electricity energy from nuclear sources by 2070, a plan that is gaining interest from foreign investors.
To actualise the plan, Ghana aims to have an operational nuclear plan by 2030, and this comes after the country launched the Ghana Nuclear Energy Program in 2012. This is a program that sets out a three-phase framework to harness the nuclear energy sector.
At the moment, the West African country is looking for a site while at the same time scouting for a vendor for its first nuclear plant installation.
With the above investment opportunities under consideration, Ghana is poised to be one of the magnets to foreign investors in the AEW, which is modelled under the theme “Energy Growth through an Enabling Environment”. This November conference looks set to unlock huge investment opportunities in the energy market across Ghana.
