Middle East tensions: Ghana’s current energy resilience thanks to increased domestic gas production – Mahama

President John Mahama has attributed Ghana’s ability to withstand global energy shocks, including the ongoing Middle East conflict, to the country’s strategic shift from liquid fuels to increased consumption of natural gas.

Speaking at the Presidential Dialogue with Civil Society Organisations at the Jubilee House, President Mahama said significant progress has been made since his administration returned to office, particularly in securing and expanding domestic gas supplies from the ENI Sankofa Field and the Jubilee Field.

“The current resilience is because we are consuming more gas than fuel,” he stated.

He revealed that the World Bank mega guarantee for the ENI Sankofa project, which had previously been drawn down to zero, has been restored by the Finance Minister to $500 million, the original guarantee amount. President Mahama emphasized that consistent payment for gas consumption has encouraged ENI to increase supply to Ghana.

In a major development, the President announced that a Memorandum of Understanding (MOU) has been signed with the Jubilee Field partners to invest an additional $2 billion to drill nearly 30 new wells, aiming to boost gas output from the field.

However, he acknowledged a critical infrastructure gap, noting that the old Atuabo gas plant cannot handle the increased volumes. He assured that plans are underway to establish a second gas train to accommodate the additional supply.

“When that is done, it means all our thermal plants will be running on gas,” he said, adding that this transition would enable Ghana to fully reduce reliance on liquid fuels.

Addressing global energy tensions, President Mahama linked Ghana’s gas investments to national security. He highlighted that the war involving Iran and the blockade of the Strait of Hormuz have disrupted liquefied natural gas (LNG) exports from Qatar and other Middle Eastern nations.

“Luckily, we have security of gas because it is our own resource,” he said.
“That is what has led to our safety in terms of what is happening. It has added to the resilience that we have.”

The President further announced that ENI has committed to invest an additional $1.5 billion, with an MOU expected within two weeks, to drill extra wells in the offshore Cape Three Points area to further increase gas supply.

Looking forward, President Mahama envisioned that Ghana could eventually produce surplus electricity for export to Burkina Faso and other neighboring countries.