Gov’t Signs $2bn Jubilee Gas Deal to Raise Output
By Praisebell Rosemond Larbi
Government has signed a US$2 billion gas agreement with the Jubilee Partners, aimed at lowering domestic gas prices, increasing utilisation and boosting crude oil production, the Minister for Energy and Green Transition, Dr John Abdulai Jinapor, has announced.
The minister disclosed this during a visit by Vice President Professor Jane Naana Opoku Agyemang to the Ministry of Energy and Green Transition on Tuesday, January 27, as part of engagements to assess progress and priorities within the energy sector.
According to Dr Jinapor, the agreement has already received Cabinet approval and will be submitted to Parliament for consideration and ratification in line with constitutional requirements.
“We have signed a two-billion-dollar agreement which Cabinet has approved and which will be laid before Parliament. This will reduce the gas price from US$3.10 to US$2.50, increase gas consumption and also boost crude oil production,” the minister said.
He explained that the revised pricing structure is expected to ease cost pressures on power producers and industrial users, while improving the commercial viability of domestic gas utilisation. The move is also expected to reduce Ghana’s reliance on more expensive liquid fuels for power generation, with positive implications for electricity tariffs and energy security.
Dr Jinapor noted that increased gas availability from the Jubilee Field would support stable power generation and enhance productivity across key sectors of the economy, including manufacturing and agro-processing.
Beyond the Jubilee agreement, the minister revealed that government has concluded another major deal valued at US$1.5 billion with the Sankofa Partners, further strengthening Ghana’s gas supply outlook.
“We have also signed another one-point-five-billion-dollar agreement with the Sankofa Partners, which is expected to increase gas supply, reduce prices and enhance production,” he said.
The twin agreements, he stressed, are central to government’s broader energy sector strategy, which focuses on stabilising supply, lowering production costs, increasing output and positioning gas as a key transition fuel in Ghana’s green energy agenda.
Dr Jinapor added that improving domestic gas utilisation would not only support economic growth but also help reduce foreign exchange pressures by cutting fuel imports and enhancing value retention within the local economy.
The Vice President, Professor Opoku Agyemang, commended the ministry for the progress made and underscored the importance of aligning energy policy with national development objectives, including industrialisation and job creation.
With parliamentary approval expected in the coming weeks, the agreements are anticipated to mark a significant step in strengthening Ghana’s oil and gas sector and improving affordability across the energy value chain.
