Government to sign 1,200MW gas power deal before end of 2026 – Mahama

President John Dramani Mahama has announced plans for Ghana to build a 1,200-megawatt (MW) state-owned gas-fired thermal power plant, which would become the country’s largest single power facility if completed as planned.

The President said the government intends to sign an agreement for the project before the end of 2026.

He made the announcement during a town hall meeting with the Ghanaian community in New York on Friday, September 25.

“We are going to build the biggest thermal capacity in Ghana. Before the end of this year, we’re going to sign 1,200 megawatts of gas thermal power,” he said.

At 1,200MW, the proposed facility would have a higher installed capacity than the 1,020MW Akosombo Hydroelectric Power Station, currently Ghana’s largest single generating facility by installed capacity.

Mr Mahama said the decision to add the new thermal capacity was informed by changes in the global energy landscape, including the transition towards renewable energy and the growing adoption of electric vehicles.

He said the government also wants to avoid investing in power assets that could become stranded as the energy mix changes.

The President said some Independent Power Producers (IPPs) that previously threatened to suspend power generation are now prepared to invest in an additional 500MW of capacity.

However, he said government would prefer to develop additional state-owned generation capacity.

President Mahama also said government had cleared the energy sector debts and reorganised the Electricity Company of Ghana (ECG) to prioritise payments to power producers.

He said the changes had helped stabilise electricity supply.

“We brought IPPs, and everybody was threatening to switch off power. Today, I can tell you, we have paid off our energy debts. And we are current with the payments,” he said.

He explained that ECG’s collection system had been reorganised so that payments to power generators would take priority.

The President also linked the planned thermal expansion to renewed investment in Ghana’s oil and gas sector.

He said oil production had increased by almost 38% since 2025, following investments by oil producers.

According to him, Jubilee Partners are investing $2 billion to drill 20 new wells, while Eni is investing $1.5 billion to bring the remaining portion of its Sankofa field into production.

He said the renewed investment would increase gas availability for thermal power generation while also boosting government revenue.

President Mahama further said major international oil companies, including ExxonMobil and Shell, are now exploring opportunities in Ghana.