Ghana positioned as key player in global oil and gas market following policy reforms
During this year鈥檚 African Energy Week: Invest in African Energies, a Ghanaian delegation engaged in forward-looking discussions, outlining key opportunities across the country鈥檚 energy industry.
On the back of a series of policy reforms and regulatory changes, Ghana has positioned itself as a globally competitive oil and gas market. The country has put in place ambitious energy targets and strives to boost oil production while stimulating development across the natural gas value chain.
A Ghanaian delegation at this year鈥檚 African Energy Week (AEW): Invest in African Energies outlined how aggressive reforms will position the country as a regional hub. The delegation鈥檚 participation not only underscored Ghana鈥檚 vital role in Africa鈥檚 energy future but reaffirmed the country鈥檚 commitment to AEW: Invest in African Energies 鈥 Africa鈥檚 largest, pan-African energy event.
Ghana has seen robust growth across its oil and gas value chain in recent months, with ongoing projects consolidating its position as a major producer. The Tema LNG plant 鈥 situated near the capital city Accra and operated by private equity company Helios Investment Partners 鈥 is set to begin production by the end of the year. Featuring infrastructure to import, store, regasify and deliver LNG to off-takers in the Greater Accra Area, the project will have a capacity of 1.7 million tons of gas per year.
Meanwhile, the Atuabo II Gas Processing Plant 鈥 developed by Ghana Gas alongside joint venture partners 鈥 is on track for production in 2025. The project, with a capacity of 150 million standard cubic feet per day (mscf/d), comprises the development of a second processing plant at the Atuabo project. Capacity could be doubled to 300 mscf/d, producing LNG, propane, butane and pentane condensates.
These projects are just two of the many underway that aim to scale-up the country鈥檚 gas monetization and distribution. Despite efforts to maximize resources, the country still offers a wealth of opportunity for exploration companies, underscoring its future role as a regional hub. At AEW: Invest in African Energies 2024, representatives from the country鈥檚 major energy players outlined these opportunities, inviting investors to join the growing market.
Speaking at this year鈥檚 conference, Egbert Faibille Jr., CEO of Ghana鈥檚 Petroleum Commission, emphasized that the country is both a stable and highly attractive investment market. He explained that political risk is 鈥渧irtually non-existent鈥 and that major projects showcase the potential for large-scale investments. Riverson Oppong, CEO of the Association of Oil Marketing Companies, echoed these remarks, highlighting that 鈥淕hana does not simply copy and paste policies, but is often a reference point for best practices, including the zero-flaring policy and local content initiatives.鈥澛
The country, however, is not content with being a stable investment environment, with further reforms planned to bolster the market鈥檚 attractiveness even further, protecting investments and ensuring high returns for financiers. Speaking at an Invest in Ghana Energies roundtable at AEW: Invest in African Energies 2024, Faibille Jr., said that further reforms could be on the horizon, including amendments to laws requiring companies to allocate at least 15% of every project to the state as free and carried interest. The country is also looking at a more flexible oil royalty regime to attract capital, mitigating risk for companies and enticing heightened investment.
Dr. Sheila Addo, Director for Policy Coordination at the National Petroleum Authority of Ghana added that Ghana鈥檚 regulatory philosophy focused on a flexible and market-driven approach. She said that the country鈥檚 approach is 鈥渙ne of deregulation. We deregulate infrastructure, price and product supply.鈥 These efforts affirm the country鈥檚 pro-investment approach to energy development and will serve as a catalyst for energy growth. As such, Ghana鈥檚 role in future energy markets is poised to grow, further amplified by a national drive to transform the economy from within.
鈥淕hana has proven time and time again that it is committed to long-term and sustainable investment. The country鈥檚 dedication to market-focused policies, strong project pipeline and continuous engagement with investors through platforms such as AEW: Invest in African Energies have driven economic growth. Going forward, Ghana鈥檚 participation at the annual AEW: Invest in African Energies鈥 events will boost the country鈥檚 energy development even further, with the country expected to continue to play a major part in the event for years to come,鈥 stated NJ Ayuk, Executive Chairman of the African Energy Chamber.
Distributed by APO Group on behalf of African Energy Chamber.
Source: African Energy Chamber