Government must not privatise Ghana Gas' second processing plant - ASEC

The Africa Sustainable Energy Centre (ASEC) has urged the government to retain full ownership of the planned second Gas Processing Plant (GPP Train 2) of the Ghana National Gas Company, warning that any move to transfer the strategic asset to a private operator could undermine the country's energy security and long-term economic interests.

In a statement signed by its Director of Research, Dr Elvis Twumasi, ASEC argued that handing GPP Train 2 to the private sector would represent an irreversible strategic mistake rather than a routine commercial transaction. It maintained that the facility should remain under state ownership to safeguard the country's gas value chain, protect electricity generation, and support industrial development.

According to the policy think tank, the country's current fuel supply framework places responsibility for supplying fuel to thermal power plants on the state through tolling agreements with Independent Power Producers (IPPs), with Ghana Gas serving as the country's exclusive processor and distributor of indigenous natural gas.

Introducing a private operator into the arrangement, it said, would create an unnecessary intermediary focused primarily on profit, potentially increasing fuel costs for electricity generation while leaving the government to shoulder the financial and structural risks.

ASEC further contended that Ghana Gas has not exhibited the characteristics that typically justify privatisation, describing the company as financially and operationally sound. It cited the company's successful operation of the Atuabo Gas Processing Plant, which has enabled the substitution of imported light crude oil with locally produced natural gas, generating substantial savings for the country.

Instead of privatising Ghana Gas, the Centre renewed its call for greater private sector participation in the commercial operations of the Electricity Company of Ghana (ECG), arguing that the utility's persistent financial losses make it a more appropriate candidate for private investment and operational reforms.

The statement also described GPP Train 2 as a strategic national asset that would play a pivotal role in supporting industrialisation. Maintaining full state ownership, it said, would ensure that gas processing capacity remains aligned with national development priorities rather than commercial interests.

ASEC cautioned that private ownership could expose the country to operational and financial risks during periods of economic instability. It argued that an operator driven primarily by commercial considerations could suspend operations or demand tariff increases during periods of currency volatility or financial stress.

The Centre concluded that natural gas remains central to Ghana's electricity supply and industrial growth, insisting that ownership and control of critical gas infrastructure should remain firmly in state hands to safeguard the country's long-term energy security.