The government plans to embark on a zero gas flaring policy in order to utilize the associated gas from the Jubilee Fields when oil production starts in the country next year, Finance and Economic Planning Minister Kwabena Duffuor said Tuesday.

Tullow Oil PLC (TLW.LN), one of the several companies exploring for oil in the Jubilee Fields off the western coast of the country, says it will start oil production in 2010.

"The gas from the Jubilee Fields will be the primary energy ... to eliminate the irregular supply of electricity and reduce power costs to businesses," Duffuor said in a speech to the country's industrialists in Accra.

"The unreliable power supply impacts adversely on economic growth, particularly from the industrial as well as commeral activities and this may undermine the achievement of our growth targets," Duffuor said.