Nigerians may witness total blackout as the wholesale gas-producing companies abruptly stopped the supply of natural gas to power generation companies for electricity production over the non-payment of debts accrued from previous supplies. The Chief Executive Officer of the Association of Power Generation Companies, Joy Ogaji, disclosed that the gas-producing companies have formally notified all GenCos of the suspension of natural gas supply.
This follows the directive by Nigerian Midstream and Downstream Petroleum Regulatory Authority instructing gas producers to suspend the delivery of natural gas to indebted GenCos until further notice, citing the escalating debts.
The Minister of Power, Adebayo Adelabu, earlier disclosed that the Federal Government would start offsetting part of the debts it owes power generating companies and gas suppliers from April this year.
“The total debt has now increased to over N2.7tn and you know that 70 per cent of thermal GenCos invoice is gas.
Meanwhile, the Nigerian Midstream and Downstream Petroleum Regulatory Authority have denied giving any directive to stop the supply of gas to the power-generating companies.
“The attention of the NMDPRA has been drawn to a news publication with a spurious claim that the Authority has directed that Gas Supply to GENCOs be halted and instructed wholesale gas suppliers to stop the further supply of gas to companies due to failure in payment obligations.”
“The NMDPRA wishes to state categorically that this report is false and completely unfounded. It a bearing ring on the information shared at a recent stakeholders’ engagement held in Lagos between the Authority, the OPTS, IPPG and other stakeholders in the oil and gas industry.”