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Ghana to Phase Out Crude Oil in Power Generation – Mahama

President Mahama invites investors to back Ghana’s cleaner energy drive as the country shifts away from crude dependence

Ghana is gearing up to eliminate crude oil from its power generation mix within the next few years, President John Dramani Mahama has announced.

Speaking at the 2025 Africa CEO Forum in Abidjan, he revealed that the country is planning to build a second gas processing train to increase the supply of domestic natural gas.

The move aims to enhance energy efficiency, cut down operational costs, and transition Ghana’s power sector to a more sustainable and environmentally friendly fuel source.

“Our current facility at Atuabo is unable to handle the increasing gas output from our fields,” Mahama explained. “With a second train, we’ll be able to channel more gas into the system, which will help us replace crude oil in power generation entirely over the next three to five years.”

Crude oil, long criticized for its high cost and price volatility, has strained Ghana’s thermal power plants and contributed to significant debt in the energy sector. Mahama emphasized that substituting it with natural gas will alleviate financial pressures, especially on independent power producers (IPPs).

The President also noted renewed interest and investment in the sector, with energy giant ENI resuming drilling activities and early signs pointing to promising oil and gas finds.

Highlighting Ghana’s economic rebound, Mahama called on investors to take advantage of the stable macroeconomic climate and participate in expanding the country’s oil and gas infrastructure.

“In the past, the sector didn’t get the attention it deserved. That’s changing. I’m rolling out the red carpet for investors willing to help Ghana unlock its energy potential,” he stated.

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