Nigeria’s Egbin Power Plc said it might shutdown the nation’s largest power station amid liquidity and gas supply issues threatening operations at the facility, Nigerian Bulletin reported. Power generated by the Egbin plant, located in lagos, reached a record low at 246MW, down from 425MW.
The company’s CEO, Dallas Peavey Jr., said that Egbin faces a challenge in paying gas suppliers. He added: “we are owed $272.8m and we in turn owe the gas suppliers approximately $95m. We are working on payment plans.” He added that the company owed banks $325m as it had to borrow to overhaul the plant after it was acquired to enable it to operate at its installed capacity of 1,320MW. Peavey Jr. concluded: “we are going to take the hard look at shutting down, because we can’t afford running it any longer.”
This comes as Nigeria’s power generation fell by over 1,000MW as 10 power plants were down during mid-September, according to News24. Total power generated in Nigeria reached 2,555.7MW, down from 3,596.2MW. Moreover, 19 thermal plants were shut down in June after militants knocked out the Forcados export pipeline and the Escravos- Lagos link early May.