Transnational Corporation of Nigeria, Transcorp Plc has suspended plans to build one of the nation’s biggest power plants as local gas shortage makes it difficult to obtain fuel and a downturn in the economy hinders efforts to raise funds for the project.
The company 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. Since then, attacks on pipelines by militant groups have cut gas supplies to stations and forced millions of Nigerians to either do without electricity or buy fuel for their own generators. Also, a dollar shortage blamed on a 15-month currency peg removed on June 20 has raised import prices and inflation, with the economy contracting in the first quarter.
While answering questions, on why the company wants to suspend its plan to build the plant,the Chief Executive Officer, Transcorp , Emmanuel Nnorom said,“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.”
Niger Delta Minister Usani Usani said the government is in talks with militants, about ending the attacks on pipelines, but could not confirm whether the group which has claimed most assaults, the Niger Delta Avengers, were part of the discussions.