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Ghana plans electricity exports to Nigeria in proposed gas-for-power deal

Ghana plans electricity exports to Nigeria in proposed gas-for-power deal

Ghana is exploring plans to supply electricity to Nigeria under a proposed arrangement in which Nigeria would provide natural gas to Ghana in exchange for power, Ghana’s Energy Minister John Abdulai Jinapor said.

The proposed “trade by barter” arrangement would see Nigerian gas transported to Ghana, where it would be used to generate electricity. Part of the power produced could then be supplied back to Nigeria, according to the minister.

The plan is part of Ghana’s broader push to strengthen its position as a regional energy hub and expand electricity trading across West Africa.

Nigeria holds some of the continent’s largest natural gas reserves, estimated at more than 210 trillion cubic feet. Ghana, meanwhile, already participates in regional electricity trade and supplies power to neighbouring countries including Togo, Benin, Burkina Faso and Ivory Coast.

The proposed arrangement could make use of the West African Gas Pipeline, which originates in Nigeria and runs through Benin and Togo before reaching Ghana. The pipeline is designed to transport natural gas, which can then be used by power plants to generate electricity.

Electricity exchanges would depend on regional power transmission infrastructure and the West African Power Pool, which is working to strengthen connections between national electricity grids across the region.

Industry experts say the proposal could deepen regional energy cooperation by allowing countries to make better use of their respective resources. Nigeria has abundant gas reserves but continues to face challenges in converting those resources into reliable electricity, while Ghana has developed significant power-generation capacity and already exports electricity to several neighbouring countries.

However, the proposed arrangement is not yet an operational agreement. Further negotiations would be required to determine the volumes of gas and electricity involved, pricing, transmission arrangements and other technical details.

If implemented, the deal could become an example of greater regional energy integration, with natural gas and electricity flowing across borders according to the needs and resources of participating countries.