Militancy: Transcorp Suspends N320bn Power Project over Gas Shortage


Transnational Corporation of Nigeria has suspended plans to build one of

the nation’s biggest power plants over gas shortage.

The company cited the poor economic situation in the country as reason for

its decision. Attacks on oil and gas installations in the country by Niger

Delta militants has also contributed significantly to the problem, making

it difficult to obtain fuel.
Transcorp in 2014, had said it would raise $1 billion to build a

1,000-megawatt gas-fired facility. Two years earlier, it bought the

Ughelli plant in the hydrocarbon-rich Delta State from the government and

more than doubled its output to 700 megawatts.
“How do you make the investments when you are generating far below your

current capacity due to gas problems. Transcorp whose interests range from

agriculture to energy, is owed over 20 billion naira (64 million dollars)

by state-owned Nigerian Bulk Electricity Trading Plc, for power generated

and not yet paid for.”the Chief Executive Officer, Transcorp , Emmanuel

Nnorom said.
The partial sale of 17 former state-owned power utilities three years ago

was meant to attract investment needed to expand the grid and end daily

blackouts. Yet, private investors have been hampered by increasing debts

owed by the government and the inability to obtain foreign exchange.

Electricity firms under the umbrella body Electricity Generation Companies

in Nigeria said last month they may be compelled to shut down because of

the gas and currency shortages.
The scarcity of gas has reduced Nigeria's power generation to less than

half of the installed capacity of 6,000 megawatts, the lowest in a decade,

even as the country holds the continent's largest reserves of the fuel.

The post Militancy: Transcorp Suspends N320bn Power Project over Gas Shortage appeared first on Pointblank News .