Nigeria’s Gas Producers Threaten Force Majeure

Nigeria’s Gas Producers Threaten Force Majeure

Nigeria’s gas producers threatened to declare force majeure over the inability of Generation Companies (Gencos) to settle outstanding arrears of over $630m for supplying gas to its power plants, reported Nigeria Today.

Nigeria’s power generation is depending on gas up to 80%, while the rest of energy production comes water, according to The Sun.

Nigeria Gas Association (NGA)’s Publicity Secretary, Frank Uzuegbunam, stated: ‘‘Some of our members have suspended further supply of gas to thermal power plants, while others are contemplating to do so anytime soon.’’

Stakeholders called for the Federal Government to interfere by taking urgent measures to address the burning issues, restore stability of power supply to ensure that parts of the country cut off from power are recommended. Nigeria may return to its dark past where both domestic and industrial users of electricity had to rely on generators, if the Federal Government did not take any action.

Sarah Samir 2752 Posts

Sarah has been writing in the oil and gas field for 8 years. She has a Bachelor Degree in English Literature. She has three years of experience in the banking sector.


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