Ghana's Energy Industry

Ghana: An Attractive Climate

Ghana’s oil and gas sector rose into significance upon the discovery of massive deposits in its offshore Jubilee field, which began production in 2010. Since then, satellite discoveries have been made in the country’s five sedimentary basins, significantly increasing its importance among the continent’s oil and gas producers. However, Ghana remains less reliant on its hydrocarbons production than its sub-Saharan African neighbours such as Nigeria, Angola and Gabon, with gold as its largest export and its services sector representing around half of national GDP.

The hydrocarbons sector is supervised by the Petroleum Commission, which oversees upstream bid rounds and enforces state guidelines surrounding oil and gas production. The sector is dominated by state-run Ghana National Petroleum Corporation, created in 1983 to champion activities in the upstream sector. International E&P companies have joined the country in developing its upstream assets, including Tullow Oil, ExxonMobil and Aker Energy. The market is seen as attractive due to low lifting prices and a stable political environment.

The government set up the privately run Ghana Gas Company in 2011 to build, own and operate infrastructure required for gathering, processing, transporting and marketing the nation’s gas resources. The company has actively developed Ghana’s successful downstream sector, which now looks to supply gas to rural areas, lower the use of diesel and heavy fuel oils in power generation and electrify the entire country. Ghana aims to become a gas trading hub for West Africa through its LNG terminal in Tenma and related infrastructure but is met with stiff competition from the region.

Ghana’s power sector is steadily expanding, driven by a strong mix of thermal, hydro, and growing renewable energy sources. Natural gas remains the main fuel for electricity generation, supported by both local production and imports, while hydropower continues to anchor the system. Renewable energy, particularly solar, is gaining ground through new public and private projects under the government’s Energy Transition Framework. With rising investment and broader grid coverage, Ghana is advancing toward near-universal electrification and a cleaner energy mix. Although power reliability challenges persist, increased gas use and diversification are strengthening the country’s long-term energy security.