West Africa’s plan to expand its regional gas pipeline network and lower energy costs depends on resolving payment risks and attracting new private investment. This was the main conclusion from government officials and industry leaders at the 2026 West Africa Gas Summit held in Accra. Natural gas is critical for industrial growth, energy security, and making economies more competitive across the region.
Speakers at the summit stressed that building more infrastructure must come with stronger commercial rules and projects that lenders find attractive. Ghana's Deputy Minister for Energy and Green Transition, Richard Gyan-Mensah, explained that better regional gas connections can reduce power generation costs. It can also make energy supply more reliable and boost economic growth throughout West Africa. The West African Gas Pipeline (WAGP), which moves natural gas from Nigeria to Ghana, Togo, and Benin, serves as a successful example of regional teamwork.
This fits into Ghana’s broader economic strategy of shifting towards more affordable and reliable energy sources. Over the last decade, Ghana’s energy landscape changed significantly with discoveries in domestic gas fields and increased imports. These supplies now provide most of the country’s electricity. This reduces Ghana’s reliance on more expensive liquid fuels. Offshore developments by companies like Tullow Oil, Kosmos Energy, Eni, and Vitol, alongside the Ghana National Petroleum Corporation, have driven this change.
Mr. Gyan-Mensah stated that domestic gas fields currently supply about 80 percent of the natural gas used for power and industrial activities. This increased availability has helped lower electricity generation costs and supported industrial growth. However, he warned that when gas supplies are not enough, power producers must use liquid fuels. This significantly increases generation costs for the country. The government sees natural gas as a 'bridge fuel' to support manufacturing, mining, and petrochemicals. This also improves energy affordability for many industries that still use diesel and heavy fuel oil.
Legal expert and energy veteran Tsatsu Tsikata emphasized that the long-term success of regional gas integration hinges on solving ongoing payment and supply problems. These issues have affected the West African Gas Pipeline system. Mr. Tsikata, who was instrumental in the pipeline’s creation, said it intended to use Nigeria’s large gas reserves to boost energy security. He called the project a key example of regional economic cooperation. However, unresolved commercial issues continue to damage confidence.
Mr. Tsikata argued that guaranteeing reliable payment mechanisms and fixing supply disruptions are necessary to attract investment. He believes lessons from the pipeline’s operation should guide future cross-border infrastructure projects. He noted that there is 'absolutely no reason why payment for gas from Nigeria should not be as secure as payment for gas supplied by Eni under a partial risk guarantee arrangement with the World Bank.' This highlights the need for robust financial frameworks to underpin regional energy trade.
The increasing demand for electricity across West Africa further underscores the importance of gas. Mr. Tsikata pointed to industrial expansion, mineral processing for gold, lithium, and bauxite, and the rise of data centers. These activities create new energy needs that are higher than original predictions. These developments emphasize that financial and commercial risks continue to limit regional energy trade and overall economic progress.