A new gas-fired power plant in the Amazon region of Brazil is being held up after the supplier demanded a debt be repaid by one of the construction vendors.

State-run oil company Petrobras has alerted Brazil’s electricity sector regulator, Aneel, that it would not supply natural gas for the $1.1bn, 590 MW Mauá 3 thermal power plant as a subsidiary of fellow state led power utility Eletrobras owes it money.

Maua 3 gas power plant
Subsidiary Amazonas Energia, which is building the plant in Manaus, owes it more than 2.5 billion reais ($814 million) for fuel supplies and as a result the plant, close to completion, may not have the gas to operate. It due to start first generation in May.

Reuters reports that the warning to the electrical sector was an indication of the efforts being made by Petrobras, the world’s most indebted oil company, to put its finances back in shape.

“Petrobras is not prepared to supply an increased consumption of gas that is not being paid,” the company said in the letter sent to regulators last week. “We should make clear to Aneel that there is no prospect of supplying natural gas to Mauá 3.”