Ghana has signed a key term sheet agreement to expand its domestic gas capacity.

The deal which brings together Eni Ghana E&P, Vitol Upstream Ghana Limited and the Ghana National Petroleum Corporation (GNPC) is to advance the next phase of the Offshore Cape Three Points (OCTP) project.

The agreement signed on Tuesday May 5, 2026 by the Minister of Energy and Green Transition, John Jinapor formalises commercial principles for the proposed Non-Associated Gas (NAG) Upgrade Project and marks a transition from earlier strategic intent to execution-focused planning.

Eni serves as operator, Vitol as a commercial and investment partner while GNPC represents state participation.

The deal builds on the Memorandum of Intent signed in September 2025, signalling continuity in Ghana’s efforts to attract upstream investment while strengthening domestic energy supply.

With it, gas output from the OCTP project is expected to increase by up to 350 million standard cubic feet per day (MMscfd) by 2028.

The expansion will be driven by the development of the Gye Nyame field, alongside the installation of a booster compressor and a new non-associated gas system on the project’s floating production storage and offloading (FPSO) vessel.

According to the Minister, “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.”

Increased domestic gas supply could also ease pressure on Ghana’s energy import bill over the medium term.

The progression from a memorandum of intent to a structured term sheet reflects improving deal certainty, which is critical in a global environment where capital allocation is increasingly selective.

“Today’s signing sends a strong signal that Ghana’s upstream petroleum sector remains open, stable, and ready for investment. It reflects our commitment to creating a predictable and competitive environment for our partners, while ensuring that our natural resources are developed responsibly for the benefit of all Ghanaians”, John Jinapor added.