Ghana has signed a new agreement with Eni, Vitol Group, and Ghana National Petroleum Corporation (GNPC) to increase domestic gas production as the country works to improve energy security and cut dependence on imported fuels.
According to Joy News, the agreement supports efforts to increase gas output under the Offshore Cape Three Points (OCTP) project, one of Ghana’s major upstream petroleum developments. Operated by Eni, the project supplies fuel for thermal power generation and industrial activities.
Energy Minister John Abdulai Jinapor and Finance Minister Cassiel Ato Forson signed the term sheet agreement on behalf of the government, outlining the commercial framework for the OCTP Non-Associated Gas Upgrade Project.
The agreement follows a Memorandum of Intent signed in September 2025, where the parties agreed to pursue strategic investments to increase Ghana’s domestic gas supply and strengthen the country’s energy sector.
Under the proposed expansion, the OCTP project is expected to increase gas production by 2028 to as much as 350 million standard cubic feet per day, equivalent to around 9.9 million cubic meters per day.
The expansion plan includes developing the Gye Nyame field, installing a booster compressor, and adding a new non-associated gas system to the project’s floating production, storage, and offloading vessel.
Authorities in Ghana view the project as important for stabilizing electricity generation as the country continues to face periodic power supply challenges linked to fuel shortages, energy sector debt, and growing industrial demand.
The agreement also comes as African gas producers increasingly position natural gas as a transition fuel to support industrialization and improve energy access while investors continue to assess the long-term outlook for fossil fuel projects.
Speaking after the signing ceremony, John Abdulai Jinapor described the agreement as a major step for Ghana’s energy plans.
“Today’s signing sends a strong signal that Ghana’s upstream petroleum sector remains open, stable, and ready for investment,” he said.
He added that the government remains committed to maintaining a predictable and competitive investment environment while ensuring the responsible development of the country’s natural resources.
source: marketscreener
African Energy Council