Tuesday, October 18, 2016

AboitizPower explores more opportunities in energy sector



 (The Philippine Star) |

MANILA, Philippines - With ongoing projects and pending acquisitions in its plate, Aboitiz Power Corp. is keeping its eyes peeled for opportunities in the power sector despite perceived oversupply in the country in the next five years, its top official said.
The company continues to watch out for upcoming opportunities for acquisitions and new power projects in the country, AboitizPower president and COO Antonio Moraza said in an informal media roundtable with reporters.
“Any power assets become available in the Philippines, we will look at it,” he said.
This is despite the company’s projection of an oversupply situation across the country’s three main grids in five years starting this year given the numerous developments of power plants from various developers, Moraza said.
In particular, he said the oversupply in Mindanao is very “serious” as the region is expected to double its existing capacity.
“Peak demand [in Mindanao is] at 1,300 megawatts (MW). Another 1,000 MW is going to be delivered, so you’re going to double supply in a period of two years,” Moraza said.
 “Reserves are running now at 700 MW and there’s no San Miguel plant No. 2, FDC plant No. 3 yet and when Ayala [project] comes on in three years’ time,” the AboitizPower official said.
Recently, AboitizPower—through its wholly-owned unit Therma Power Inc.—has finalized purchase and sale agreements for the acquisition of 66.1 percent in GNPower Mariveles Coal Plant Ltd. Co. and 40 percent GNPower Dinginin Ltd. Co. from affiliated investment funds of The Blackstone Group L.P.
The deal, however, is subject to approvals by the Philippine Competition Commission (PCC) and the Board of Investments (BOI).
The Aboitiz group is also eyeing to bid for the Philippine geothermal assets being unloaded by American energy giant Chevron Corp. with its potential partner Marubeni Corp. of Japan.
“It’s still full speed ahead,” Moraza said, pertaining to the Chevron bid participation.
The company currently has power projects currently under construction working on the 68-MW Manolo Fortich hydropower plant, 340-MW coal-fired power plant in Cebu under Therma Visayas Inc. and the 420-MW coal-fired Pagbilao III.
“Cebu’s under construction, Pagbilao’s under construction. After that, we don’t have any new contracts. [But we will] not stop. We’re looking but we don’t have any new contracts yet,” Moraza said.
AboitizPower is also in pre-construction works in for the first 300 MW of the 600-MW Redondo Peninsula Energy (RP Energy) project in Subic, Zambales.
Moraza said RP Energy is seen to break-ground in mid-January 2017. “We’re gonna award the [engineering, procurement and construction] EPC contract very soon,” he said.
RP Energy is a consortium composed of Meralco PowerGen Corp., AboitizPower and Taiwan Cogeneration International Corp.

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