Wednesday, January 12, 2011

SMC to double power output

Manila Standard Today
by Jenniffer B. Austria
Diversifying conglomerate San Miguel Corp. plans to double its power generating capacity to over 6,000 megawatts over the next five years by building new coal-fired plants.
Alan Ortiz, president of unit San Miguel Global Power Holdings Corp., told reporters after a meeting with potential co-investors that 3,000 MW in new generating capacity would come from coal-fired power plants using its deposits in Daguma mines in South Cotabato province.
Ortiz said the company would focus on increasing its power generation in Luzon and Mindanao, where supply is insufficient.
“Hopefully, we can complete the new plants within the term of President Aquino,” Ortiz said.
Ortiz said the additional capacity of 3,000 MW could just address one-fifth of the projected supply deficit.
“Other companies can fill in the gap. We don’t want to dominate, we just want to build what is possible,” Ortiz said.
He said San Miguel also planned to expand the capacity of its power plants and was looking to acquire state assets to be offered by Power Sector Assets and Liabilities Management Corp.
PSALM is expected to bid out the 650-MW Malaya thermal power plant, the Caliraya-Botokan-Kalayaan hydropower station, Sucat Thermal Power Plant and the Agus and Pulangui facilities in Mindanao.
San Miguel Global Power, a wholly-owned unit of San Miguel, has a generating capacity of 3,100 MW. Its power assets include the 1,200-MW Sual coal-fired plant in Pangasinan province; 600-MW Limay thermal facility and the 340-MW San Roque hydro facility, also in Pangasinan.
Ortiz said the company was reviewing the expansion of its power plants to meet the increasing demand.
Meanwhile, San Miguel Global is meeting with investors in Singapore, Hong Kong and London this week for a “no-deal roadshow.”
The company met with local banks Tuesday to drum up interest on a possible dollar-denominated bond sale.
Ortiz and other San Miguel officials declined to comment on the bond sale, including the size and timetable.
Sources said San Miguel’s planned bond sale could take place within this month with size ranging from $250 million to $500 million.
San Miguel is currently the biggest player in the power generation sector.

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