Ghana has formalised the commercial framework for a major expansion of its offshore gas infrastructure, signing a term sheet agreement with Eni Ghana Exploration and Production Limited, Vitol Upstream Ghana Limited, and the Ghana National Petroleum Corporation (GNPC) to unlock an additional 350 million standard cubic feet per day (MMscfd) of gas output by 2028.
The agreement, signed on May 5, 2026, by Energy and Green Transition Minister John Jinapor and Finance Minister Dr Cassiel Ato Forson, advances the Offshore Cape Three Points (OCTP) Non-Associated Gas (NAG) Upgrade Project from planning into full commercial execution. It follows a Memorandum of Intent signed in September 2025 during Africa Oil Week in Accra, in which the parties committed to deepening collaboration on strategic energy investments.
Operational since August 2018, the OCTP project has become a cornerstone of Ghana’s domestic gas supply, currently providing approximately 70 percent of the country’s total gas consumption, primarily for electricity generation.
The planned expansion will be driven by the development of the Gye Nyame field, installation of a booster compressor, and integration of a new non-associated gas system on the project’s floating production storage and offloading (FPSO) vessel, the John Agyekum Kufuor. Gas from the facility is transported via subsea pipeline to onshore receiving facilities at Sanzule before being injected into the Western Corridor Gas Pipeline for distribution to thermal power plants and industrial customers.
Minister Jinapor described the project as central to national energy strategy. “The OCTP project remains a cornerstone of Ghana’s energy mix, supplying a substantial share of the country’s gas for power generation. This planned upgrade will enhance our energy security, reduce reliance on imported fuels, and support growing demand from industry and households,” he said.
The term sheet sets out the key commercial principles guiding the development of new gas infrastructure under the NAG Upgrade Project, marking a fresh phase in Ghana’s upstream energy push.
The agreement is also seen as a vote of confidence in Ghana’s upstream petroleum sector at a time when global energy investors are exercising greater selectivity in capital deployment. Jinapor said the signing “sends a strong signal that Ghana’s upstream petroleum sector remains open, stable, and ready for investment,” adding that it reflects the government’s commitment to a predictable and competitive environment for partners.
The OCTP project is operated by Eni Ghana with a 44.4 percent stake, in partnership with Vitol Upstream Ghana (35.6 percent) and GNPC (20 percent). Eni has been active in Ghana since 2009.
With gas playing an increasingly critical role in reducing dependence on oil-based power generation, analysts say the expanded supply could lower electricity generation costs, ease pressure on foreign exchange, and improve grid stability as Ghana works to meet rising energy demand.
