Transnational Corporation of Nigeria has suspended plans to build one of
\nthe nation’s biggest power plants over gas shortage.
\nThe company cited the poor economic situation in the country as reason for
\nits decision. Attacks on oil and gas installations in the country by Niger
\nDelta militants has also contributed significantly to the problem, making
\nit difficult to obtain fuel.
\nTranscorp in 2014, had said it would raise $1 billion to build a
\n1,000-megawatt gas-fired facility. Two years earlier, it bought the
\nUghelli plant in the hydrocarbon-rich Delta State from the government and
\nmore than doubled its output to 700 megawatts.
\n\u201cHow do you make the investments when you are generating far below your
\ncurrent capacity due to gas problems. Transcorp whose interests range from
\nagriculture to energy, is owed over 20 billion naira (64 million dollars)
\nby state-owned Nigerian Bulk Electricity Trading Plc, for power generated
\nand not yet paid for.\u201dthe Chief Executive Officer, Transcorp , Emmanuel
\nNnorom said.
\nThe partial sale of 17 former state-owned power utilities three years ago
\nwas meant to attract investment needed to expand the grid and end daily
\nblackouts. Yet, private investors have been hampered by increasing debts
\nowed by the government and the inability to obtain foreign exchange.
\nElectricity firms under the umbrella body Electricity Generation Companies
\nin Nigeria said last month they may be compelled to shut down because of
\nthe gas and currency shortages.<\/p>\n
The scarcity of gas has reduced Nigeria\u2019s power generation to less than
\nhalf of the installed capacity of 6,000 megawatts, the lowest in a decade,
\neven as the country holds the continent\u2019s largest reserves of the fuel.<\/p>\n","protected":false},"excerpt":{"rendered":"
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…<\/p>\n","protected":false},"author":1,"featured_media":38414,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","footnotes":""},"categories":[5],"tags":[],"class_list":["post-51965","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news"],"yoast_head":"\n