Keypoints:
- Ghana signs OCTP gas expansion framework with Eni and Vitol
- Project could raise gas output to 350 MMscfd by 2028
- Upgrade aims to strengthen energy security and cut fuel imports
GHANA has signed a new framework agreement with Eni Ghana E&P, Vitol Upstream Ghana Limited and the Ghana National Petroleum Corporation (GNPC) to expand gas production from the Offshore Cape Three Points (OCTP) project, a move expected to strengthen energy security and reduce fuel imports by 2028.
The expansion could raise OCTP gas output to 350 million standard cubic feet per day (MMscfd) by 2028, positioning the project as a central pillar of Ghana’s gas-to-power strategy and wider industrial growth ambitions.
The agreement, announced by Energy Minister John Abdulai Jinapor in a Facebook post on Wednesday, establishes a framework of commercial principles to support the OCTP Non-Associated Gas Upgrade Project.
The signing ceremony was attended by Finance Minister Cassiel Ato Forson alongside officials from Eni, Vitol and GNPC.
Ghana pushes for higher domestic gas output
According to Jinapor, the proposed upgrade will be driven by the development of the Gye Nyame field, alongside the installation of a booster compressor and a new non-associated gas system on the project’s floating production storage and offloading vessel.
The minister said the agreement marked another major step in Ghana’s efforts to secure reliable and affordable domestic energy supplies for households and industry.
‘This milestone builds on the Memorandum of Intent signed in September 2025, through which the parties committed to collaborate on strategic investments in Ghana’s energy sector,’ Jinapor wrote.
The parties had earlier committed to a broader investment framework under a September 2025 strategic energy agreement.
The offshore project remains one of Ghana’s most important sources of gas for thermal power generation. The OCTP project currently supplies a major share of gas used for Ghana’s thermal power plants.
Domestic gas production remains critical to reducing Ghana’s dependence on imported liquid fuels, particularly at a time of foreign exchange pressures and volatility in global energy markets. Ghana currently relies heavily on thermal generation for baseload electricity supply, making stable indigenous gas production increasingly important for long-term grid reliability.
Energy security remains a priority
The planned expansion is expected to support rising electricity demand from industry, mining, manufacturing and households while helping stabilise fuel supply to thermal generation plants.
Ghana has faced periodic power supply challenges over the past decade due to fuel shortages, generation constraints and financial pressures within the energy sector. Policymakers increasingly view domestic natural gas as a transition fuel capable of supporting economic growth while reducing exposure to costly fuel imports.
Last year, Eni and its partners completed an upgrade of OCTP’s gas processing system, increasing capacity to 270 MMscfd.
Energy analysts have repeatedly warned that insufficient domestic gas supply remains one of the biggest risks to long-term power reliability in Ghana. Officials from the Africa Centre for Energy Policy (ACEP) have argued that sustained investment in local gas infrastructure will be necessary to reduce fuel import costs and improve industrial competitiveness.
Regional competition for energy investment has also intensified as countries including Senegal, Mozambique and Nigeria pursue major gas and LNG expansion projects aimed at attracting international capital and export revenues.
The government believes expanding local gas production could ease pressure on public finances while supporting more stable electricity generation across the country.
Government seeks to reassure investors
Beyond the production targets, the agreement also signals Ghana’s intention to maintain investor confidence in its upstream petroleum sector amid growing competition for global energy capital.
Jinapor said the signing demonstrated that Ghana remained open to investment and committed to providing a predictable operating environment for international energy companies.
‘Today’s signing sends a strong signal that Ghana’s upstream petroleum sector remains open, stable, and ready for investment,’ he said.
The consortium has also continued offshore expansion work, including new drilling activity at the Sankofa field.
He added that the government remained focused on ensuring Ghana’s natural resources were developed responsibly for the benefit of citizens.
The OCTP project is operated by Eni in partnership with Vitol and GNPC and remains central to Ghana’s long-term gas-to-power strategy.
If completed on schedule, the upgrade could play an important role in strengthening electricity reliability, supporting industrial expansion and reducing the risk of future fuel-related power disruptions, commonly associated with Ghana’s past ‘dumsor’ (constant power outages) power crises.
