The government has indefinitely postponed the privatization of the decommissioned 850-MW Sucat and 630-MW Malaya thermal plants to maximize their value in preparation for the development of the country’s natural gas industry, an official said Wednesday.
Energy Secretary Jose Rene Almendras told reporters the government was finalizing the bidding terms for the 100-kilometer Batangas-Manila gas pipeline and would offer the two power plants for conversion into natural gas.
Almendras said bidders would likely treat Sucat and Malaya as real estate properties. “But if you sell it with a guaranty that the pipeline will be there, then that’s a real power investment,” he said.
The Sucat power plant is idle while Malaya is being used as a must-run unit when other power plants are not in operation.
Almendras said some prospective investors had expressed interest to rehabilitate the Sucat thermal plant once the gas pipeline was put in place.
The government hopes to finalize the terms of reference for the $150-million Batangas-Manila gas pipeline within the year.
“We are hoping as soon as we finalize the plans for the pipeline, the value of Sucat improves. People will see it as investment into a natural gas facility,” Almendras said.
“[Sucat] can run on natural gas, because it is a thermal plant,” he said.
He said the government would not operate the Sucat or Malaya plants because of the law that prohibits the state from going into power generation and competing with the private sector.
The Energy Department said the development or expansion of the downstream natural gas market relies on infrastructure, including gas transmission and distribution pipeline, liquefied natural gas terminals and refilling stations.
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