The impending closure the end of next year of one of the nation’s largest coal-fired electric generation plants on the Navajo Nation Reservation in Arizona, a victim of cheaper natural gas and renewables, appeared to be the tribe’s only option once again Friday after two private equity investment firms announced they were dropping plans to purchase the 2,250 MW power plant.

The five-part federal government/utility ownership of the massive Navajo Generating Station (NGS) does not have any other prospective buyers, according to Scott Harelson, a spokesperson for Phoenix-based Salt River Project (SRP), the majority (42.9%) owner. “We will provide information and support should another [prospective buyer] step forward,” he told NGI.

Last Thursday, New York City investment company Avenue Capital Group and Illinois-based Middle River Power (MRP) said they no longer are seeking to buy NGS, near Page, AZ. They were intending to keep the plant operating after the existing owners’ scheduled stoppage on Dec. 22, 2019.

It has been a little more than a year since the Navajo Nation Council approved an agreement to continue operating NGS through 2019, after which the plant would be retired. Its owners characterized the situation as another closure related to cheap natural gas supply. Absent the agreement, as decided earlier by its four utility owners, NGS would have been shuttered at the end of 2017.

Ownership of the plant on Navajo reservation land is led by SRP, but also includes the U.S. Bureau of Reclamation (24.3%), Arizona Public Service (14%), Nevada Power (11.3%), and Tucson Electric Power (7.5%).

After the utility owners collectively decided not to extend the current lease terms, the Department of Interior and other stakeholders launched an effort to keep the plant open while coal supplier Peabody Coal Co. retained Lazard Ltd. to identify potential owners.

SRP helped create a data room to provide all the plant’s information for prospective buyers. “Initially, 16 entities expressed interest and signed nondisclosure agreements,” said Harelson, adding that SRP has hosted a number of plant tours for prospective buyers over the past 18 months.

Since March, SRP has been involved in numerous meetings and site visits by MRP and the Navajo Nation officials. “We appreciate the time and effort made by MRP officials as they considered the possibility of purchasing NGS,” said SRP CEO Mike Hummel.