Wednesday, April 13, 2016

Trans-Asia pursues investment in LNG



By Danessa Rivera (The Philippine Star) | Updated April 13, 2016 - 12:00am

MANILA, Philippines – Trans-Asia Petroleum Corp., a subsidiary of Trans-Asia Oil and Development Corp., (to be renamed Phinma Energy Corp.), is pursuing investments in the liquefied natural gas (LNG) sector.
The company is venturing into the LNG sector amid the need for new sources of fuel as the Malampaya deep water gas-to-power project is nearing depletion, Trans-Asia Petroleum executive vice president Raymundo Reyes said on the sidelines of the company’s stockholders’ meeting yesterday.
“This is a new direction the company is pursuing. The depletion of gas reserves of Malampaya is approaching and (lack of) discovery of indigenous gas of significant quantities, the country will be dependent on imported gas for a significant portion of its energy requirements,” he said.
Trans-Asia Petroleum is currently undertaking a pre-feasibility study for a LNG receiving terminal in Sual, Pangasinan.
The terminal would have an estimated capacity of 0.5 million tons per annum, “enough to power a 500 megawatt (MW) gas fired power plant,” Reyes said.
He said investments could amount to at least $500 million for the terminal and the power plant.
“Once operational, the terminal can supply gas as fuel for power generation, transport and domestic applications, district cooling, and the gas will also be used for industries,” Reyes said.
Company presentations showed the pre-feasibility study is expected to be completed by the end of the second quarter while a final investment decision is targeted by year-end.
“The pre-feasibility study will be completed in the middle of the year then we’ll proceed with the feasibility study. Hopefully, while we’re doing the feasibility study, the new administration will have a policy on the fuel energy mix,” Trans-Asia Petroleum president and CEO Francisco Viray said in a separate interview.
The LNG terminal could be completed as early as 2018, the company official said.
“We’re doing the 100-percent development and then we’ll just find a partner depending on the outcome of the project,” Viray said.
While the company will maintain its interest in local petroleum service contracts, it is also actively seeking upstream investment opportunities in the region, in particular those that involve petroleum assets with existing production or are in the development stage.
Currently, the group’s power portfolio is about 500 MW. This includes the new 135-MW clean coal power plant in Calaca, Batangas, a project with the Ayala Group; an integrated 20-MW geothermal project in Sto. Tomas, Batangas with the Yuchengco Group and the Philippine National Oil Co.; the 54-MW San Lorenzo wind farm in Guimaras Island; and the expanded 30-MW geothermal plant under Maibarara Geothermal Inc. (MGI).
It also owns Power Barges 101, 1012 and 103, which have a combined capacity of 96 MW.

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