Ghana Secures Deal to Boost Domestic Gas Production from OCTP Project
On Tuesday, Ghana’s Minister of Energy and Green Transition, Dr. John Abdulai Jinapor, and Finance Minister Dr. Cassiel Ato Baah Forson signed a term sheet that outlines a framework for expanding gas output from the Offshore Cape Three Points (OCTP) project. The agreement brings together Eni Ghana E&P—a subsidiary of the Italian energy group Eni, which operates through Vitol Upstream Ghana Limited—and the Ghana National Petroleum Corporation (GNPC).
The term sheet sets the commercial principles needed to develop new gas infrastructure under the OCTP Non‑Associated Gas (NAG) Upgrade Project. If implemented as planned, the project’s daily gas production is expected to rise from roughly 280 million standard cubic feet per day (mmscf/d) to 350 mmscf/d by 2028.
Background of the OCTP Field
The OCTP block, located about 60 kilometres off Ghana’s western coast, commenced operations in 2017. It produces both oil and associated gas from the Sankofa and Gye Nyame fields. Gas from OCTP currently feeds domestic power plants and supports a modest export stream to neighbouring West African markets.
According to data released by the Ghana Energy Commission in 2023, the combined gas supply from the Jubilee and OCTP fields for domestic power generation stood at approximately 396 mmscf/d. The OCTP contribution alone accounted for roughly 280 mmscf/d, leaving a gap that the country has historically filled with imported liquefied natural gas (LNG) and liquid fuels.
Details of the Expansion Plan
The upgrade centres on three main components:
- Development of the Gye Nyame field’s non‑associated gas reserves.
- Installation of a booster compressor to raise pipeline pressure and improve flow rates.
- Addition of a new unrelated gas processing system on the floating production, storage and offloading (FPSO) vessel that currently handles OCTP output.
These measures aim to debottleneck existing facilities and allow the field to sustain higher production rates without compromising safety or environmental standards. Eni’s technical team, in collaboration with Vitol Upstream Ghana Limited, will lead the engineering, procurement, and construction phases, while GNPC will oversee regulatory compliance and local content obligations.
Projected Impact on Energy Security
Increasing OCTP’s gas output to 350 mmscf/d would reduce Ghana’s reliance on imported fuels for electricity generation. The Ministry of Energy estimates that the additional 70 mmscf/d could displace roughly 150,000 barrels of oil equivalent per year in thermal power plants, translating to lower fuel import bills and reduced exposure to volatile global oil prices.
Beyond the power sector, the extra gas is earmarked for industrial users—such as fertilizer plants and textile factories—and for expanding household access to clean cooking fuel. This aligns with Ghana’s broader energy transition goals, which include raising the share of natural gas in the national energy mix from about 20 % today to over 30 % by 2030.
Government Stance and Investment Climate
Speaking after the signing ceremony, Dr. Jinapor described the agreement as “a significant milestone for Ghana’s energy future.” He emphasized that the government remains committed to:
- Maintaining an open, stable, and transparent upstream petroleum sector.
- Providing a predictable and competitive fiscal framework for investors.
- Ensuring that natural resource development delivers tangible benefits to all Ghanaians.
Finance Minister Forson echoed these points, noting that the term sheet reflects the country’s strategy to attract strategic partnerships that boost domestic value addition while adhering to environmental, social, and governance (ESG) best practices.
Looking Ahead
The next steps involve finalising engineering designs, securing financing—potentially through a mix of equity contributions from Eni and Vitol, debt financing from regional development banks, and GNPC’s own resources—and obtaining the necessary permits from the Petroleum Commission and the Environmental Protection Agency. Subject to regulatory approvals, construction could begin in late 2026, with first gas from the upgraded facilities expected by 2028.
If the timeline holds, Ghana will be better positioned to meet rising domestic demand, enhance energy security, and continue its transition toward a more sustainable and resilient energy system.
Sources: Ministry of Energy and Green Transition press release (September 2025); GNPC annual report 2023; Eni Ghana E&P project update (2024); Reuters article “Ghana signs deal to boost OCTP gas output” (October 2025).
