Parliament has approved the 2026 Work Programme of the Ghana National Petroleum Corporation (GNPC) and has urged the Ministry of Finance to increase the Corporation’s budgetary allocation from the current 15 per cent to 30 per cent in the 2026 Mid-Year Budget Review to safeguard critical energy investments.
The call follows concerns raised by Parliament’s Committee on Energy over a widening funding gap at GNPC, which lawmakers warn could undermine the Corporation’s operational stability and long-term investment plans if not urgently addressed.
While the Minority cautioned that further budget cuts could negatively affect GNPC’s corporate social responsibility initiatives, particularly in sports development, the Majority argued that a leaner allocation would allow the Corporation to focus on its core mandate and ensure more judicious use of resources.
According to the Committee, GNPC’s funding deficit has expanded significantly from US$124.78 million in 2025 to US$214.41 million in 2026 before financing. These concerns were outlined in GNPC’s 2026 Work Programme, submitted in accordance with Section 7(3)(b) of the Petroleum Revenue Management Act, 2011 (Act 815), as amended.
The Committee attributed the shortfall largely to inadequate revenue inflows, which have compelled GNPC to rely increasingly on external borrowing estimated at about US$40 million, projected cash balances, and the recovery of outstanding receivables amounting to US$159.41 million.
It warned that this financing structure exposes the Corporation to heightened cash-flow risks, particularly given its dependence on payments from entities such as Genser Energy and the Tema Oil Refinery (TOR).
Despite the funding challenges, the Committee acknowledged improvements in GNPC’s gas monetisation efforts. The gas business segment, though generating a modest net margin of US$12.20 million, is projected to record strong revenue growth—from US$1.06 billion in 2025 to US$1.21 billion in 2026—largely driven by increased gas supply from the Jubilee and Sankofa-Gye Nyame fields.
For 2026, GNPC projects total revenues of US$1.43 billion against expenditures of US$1.64 billion, resulting in a funding gap of US$202.22 million. The deficit is expected to be covered through a mix of cash balances brought forward, term loans, external support including from the GNPC Foundation, and the recovery of government and third-party receivables.
The Committee outlined GNPC’s key strategic priorities for the year, including stabilising production in mature fields such as Jubilee, TEN and Sankofa-Gye Nyame; accelerating exploration activities in the Voltaian Basin and the GH-CB-01 Block; and expanding gas infrastructure, notably the Tema Gas City Gate, gas distribution pipelines, and the potential acquisition of a liquefied natural gas (LNG) terminal.
In addition, GNPC plans to strengthen institutional capacity through targeted capital investments, increased digitalisation, and expanded social intervention programmes under the GNPC Foundation.
Parliament emphasised that improving GNPC’s financial capacity is critical to sustaining Ghana’s upstream petroleum sector, enhancing gas monetisation, ensuring energy security, and supporting broader industrial growth.
By: Christian Kpesese
