Aboitiz power unit prepared to deploy another barge to Mindanao

Business World Online

Posted on August 18, 2013 10:05:43 PM

DAVAO CITY -- Power producer Therma Marine, Inc., which operates two power barges in Mindanao rated at close to 100 megawatts (MW) each, is prepared to bring another barge to the island if demand for electricity erodes the island’s already-thin reserves further before planned new supply goes online.

Jovy P. Batiquin, chief operating officer of the Aboitiz Power Corp. (AboitizPower) subsidiary, said in a recent interview that Therma Marine has more barges to deploy, but that it will send a third barge here only if customers -- consisting of distribution utilities -- will sign new supply contracts.

“There are (customers) who have asked us (for more power), but we cannot just bring a power barge (to Mindanao) if no one signs a contract,” Mr. Batiquin said.

The company, Mr. Batiquin said, has a power barge stationed in Navotas that could be moved, but bringing it to Mindanao would “take a lot of resources and even preparation.”

He said there have been talks with prospective customers, but nothing has been finalized.

The Web site of the National Grid Corporation of the Philippines showed that Sunday -- when demand is supposed to be low -- saw Mindanao with a 17-MW deficit due to an estimated system peak of 1,211 MW that outstripped 1,194 MW in system capacity. This, despite recent rains.

Mr. Batiquin said he expects the island’s situation to worsen again when summer months arrive. Hydroelectric plants -- particularly those at the Agus and Pulangi facilities -- which depend on rivers that risk running dry in the hot months, provide more than half of Mindanao’s power supply.

The company already operates its two power barges moored in Maco, Compostela Valley and Nasipit, Agusan del Norte at an average of 16 hours a day.

The two power barges, with combined capacity of 192 MW, have provided a palliative solution to the power problems of the islands since 2010.

During the Mindanao Business Conference held here a week ago, business leaders asked the government to come up with permanent solutions to the power problem.

Government projects that if all planned power projects are completed within the next two years, Mindanao will likely have a power surplus.

Within the next two years, additional power of at least 500 MW is expected to be online when Therma South, Inc., another AboitizPower subsidiary, and Conal Holdings Corp. of the Alcantara Group start operating their 300-MW and 200-MW power plants, respectively.

Two other companies -- SMC Global Power Holdings Corp. of San Miguel Corp. and FDC Misamis Power Corp. of Filinvest Development Corp. -- are building 600-MW and 405-MW power plants, respectively.

All these new plants are coal-fired, taking more of the burden for the entire island’s electricity requirements from hydro power.

Therma Marine is wholly owned subsidiary of AboitizPower, which in turn is the power generation and distribution arm of the Aboitiz Group.
Therma Marine currently supplies a total of 70 MW to 12 power distributors in Mindanao: Agusan del Norte Electric Cooperative, Inc.; Agusan del Sur Electric Cooperative, Inc.; Surigao del Sur I Electric Cooperative, Inc.; Surigao del Sur II Electric Cooperative, Inc.; Misamis Occidental I Electric Cooperative, Inc.; South Cotabato I Electric Cooperative, Inc.; South Cotabato II Electric Cooperative, Inc.; Zamboanga City Electric Cooperative, Inc.; Cotabato Electric Cooperative, Inc.; Zamboanga del Sur Electric Cooperative, Inc.; Sultan Kudarat Electric Cooperative, Inc.; and Davao Oriental Electric Cooperative, Inc.

AboitizPower saw its net income decline by 25% to P4.9 billion last quarter from P6.6 billion in the same three months last year.

Its shares lost 15 centavos or 0.45% to close at P32.95 apiece on Friday last week from P33.10 each on Thursday. -- C. Q. Francisco   source