Ghana Braces for Power Disruptions as Eni Upgrades Gas Plant

Eni S.p.A E is set to temporarily suspend operations at its gas processing facility in Ghana this Sunday to carry out upgrades aimed at increasing natural gas output (according to Ghana's Energy ministry), per a Reuters report. The move, while expected to improve long-term energy security, could lead to temporary power supply disruptions across the country.

The supply enhancement deal between Eni and Ghana’s government will raise gas deliveries by 30 million standard cubic feet per day (MMSCFD), bringing the total to 270 MMSCFD. However, during the upgrade, Eni will halt some operations, reducing gas availability for power generation in the short term.

Eni’s OCTP Vital to Ghana’s Power Sector

Eni’s Offshore Cape Three Points (“OCTP”) project, located off Ghana's Atlantic coast, currently supplies around 65% of the country’s energy demand. The facility plays a pivotal role in the country’s efforts to reduce reliance on imported fuels and enhance domestic energy capacity.

At a recent event in Kumasi, Energy minister John Jinapor acknowledged the possibility of temporary blackouts but emphasized that the outage is a necessary step toward long-term improvements. He noted that once the work is completed, gas supply and production will stabilize, leading to better power delivery.

Tullow Oil Also Improves Supply

Per the report, in a related development, UK-based Tullow Oil announced plans last week to boost gas production from its Jubilee and TEN fields to 130 MMSCFD. The coordinated push by Eni and Tullow aligns with Ghana’s broader strategy to monetize its hydrocarbon resources before global decarbonization efforts render them obsolete.

As the world’s second-largest cocoa producer, Ghana is aggressively pursuing energy infrastructure enhancements to strengthen its economy and avoid the risk of stranded fossil fuel assets in the energy transition era.

E’s Zacks Rank & Key Picks

E currently carries a Zack Rank #3 (Hold).

Investors interested in the energy sector may look at a few better-ranked stocks like TechnipFMC plc (FTI), W&T Offshore, Inc. WTI and Oceaneering International, Inc. OII, each  carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

TechnipFMC continues to build momentum in its subsea business, supported by strong order activity and a growing pipeline of opportunities. A key strength in FTI’s business model is its limited exposure to U.S. land operations, which are more sensitive to volatile commodity pricing.

The Zacks Consensus Estimate for FTI’s 2025 EPS is pegged at $2.08. The company has a Value Score of B.

W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company’s acquisition of six shallow-water fields in the GoA added 18.7 million barrels of proved reserves and 60.6 million barrels of proved plus probable reserves. The firm is focused on strategically allocating capital toward organic projects, which should boost its production outlook. WTI has a Value Score of B.

Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. With a geographically diverse asset portfolio and a balanced revenue mix between domestic and international operations, the company effectively mitigates risk. As a leading provider of offshore equipment and technology solutions to the energy sector, OII benefits from strong relationships with top-tier customers, ensuring revenue visibility and business stability.

The Zacks Consensus Estimate for OII’s 2025 EPS is pegged at $1.79. The company has a Value Score of B.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research