Oil giant to invest $1 billion in PHL’s LNG project

By Elijah Felice Rosales - January 31, 2019

https://businessmirror.com.ph/2019/01/31/oil-giant-to-invest-1-billion-in-phls-lng-project/

INDONESIA’S second-largest crude oil producer is planning to invest $1 billion, as it expressed interest in the development of liquefied natural gas (LNG) in the Philippines.

PT Pertamina said it intends to put up a $1-billion regasification hub in the country. It is eyeing to offer its integrated LNG solutions by investing in a floating storage regasification unit or land-based LNG regasification to provide supply at a competitive price.

In his dialogue with PT Pertamina officials, Trade Secretary Ramon M. Lopez vowed the government would assist potential investors in the LNG industry.

“The Philippines is very much open to LNG investors. We will assist and work with them in looking for trusted partners until they begin their operations,” Lopez said in a news release.

Corporate Marketing Director Basuki Trikora Putra said PT Pertamina is determined to pour in capital and play a role in the development of the growing local LNG industry.

“Having a long experience as one of the world leading LNG global players, we would like to share the same experience in the Philippines. We are really keen to invest in the [country],” Putra added.

PT Pertamina, a government-owned national energy firm of Indonesia, operates six refineries that have a combined daily capacity of 1 million barrels of crude oil.

Officials of the Indonesian gas producer are also scheduled to meet with the Board of Investments, Department of Energy and Energy Regulatory Commission to align the investment plan with the government’s policies on energy. The dialogue with Lopez was the first visit of PT Pertamina in the country. 

PNOC-EC net income in 2018 up 25% to P1.37 billion

By Lenie Lectura - January 31, 2019

https://businessmirror.com.ph/2019/01/31/pnoc-ec-net-income-in-2018-up-25-to-p1-37-billion/

THE Philippine National Oil Co.-Exploration Corp. (PNOC-EC) recorded a net income of P1.371 billion in 2018, up 25 percent from the P1.095 billion it recorded a year ago.

PNOC-EC’s service and business revenues last year stood at P5.169 billion, higher than the P4.38 billion recorded in 2017.

Expenses, likewise, increased to P2.816 billion in 2018 from P2.364 billion in 2017.

Separately, PNOC-EC issued a bid invite for accreditation regarding its plan to purchase Euro 4 diesel or gasoline.

“PNOC-EC, through its oil committee, invites interested suppliers, both local and foreign, for accreditation for the supply of Philippine Standard Euro 4 50 ppm [parts per million] gas oil or diesel fuel,” said PNOC-EC in a bid invite.

Interested suppliers must meet the minimum qualifications and submit the required documents on or before February 15, 2019.

Suppliers who want to be accredited must be in the business of trading and supply of petroleum for at least two years.

Required is a proof of minimum two transactions of at least 30,000 metric tons (MT) of petroleum each for the last two years.

They should also submit proof of financial capacity, previous transactions in the supply of petroleum completed in the last two years, company profile, among others.

Local and foreign firms are allowed to participate.

The Department of Energy (DOE) fully supports PNOC-EC in sourcing petroleum products, saying this move is meant to “establish a strategic petroleum reserve [SPR] to cushion the impact of the rising price of oil in the international market.”

Energy Secretary Alfonso G. Cusi said the government is aware of the country’s “vulnerabilities to abrupt changes in the international oil situation and impending threats on the same; hence, we are formulating various strategies to address those vulnerabilities to cushion the impact for our consumers.”

Meralco prepaid customers number 100,000 at end-2018

By Lenie Lectura - January 31, 2019

https://businessmirror.com.ph/2019/01/31/meralco-prepaid-customers-number-100000-at-end-2018/

THE Manila Electric Co. (Meralco) has registered over 100,000 prepaid electricity service (PRES) customers last year.

“Our approval is for 140,000. We’ve breached the 100,000-mark, maybe 105,000 or 108,000 and we intend to finish up the 40,000 this year,” Meralco Senior Vice President Alfredo Panlilio said.

In 2017, Meralco activated an additional 48,735 PRES customers, cumulative of 89,717. The activations in 2017 were an all-time high, doubled year-on-year.

The prepaid service runs on the latest “smart” meters that allow customers to monitor their electricity consumption, allowing them to budget their consumption and expenses.

In all, Meralco applied for a total of 1 million smart meters to be installed across its service areas. But the Energy Regulatory Commission (ERC) has yet to approve Meralco’s applications.

Panlilio is assuming the ERC needs to approve first the business rules for its Advanced Metering Infrastructure (AMI) project before Meralco’s applications for additional smart meters are approved.

“The filings we’ve given the last three years have not been decided on, totaling about a million meters. But I think the first step we need is to finalize the AMI business rules. Once they’ve finalized that, they should approve our filings on the meters,” he said.

AMI is an integrated system of smart meters, communication networks and data-management systems that enables two-way communication between utilities and customers.

The smart meters can handle prepaid and post-paid electricity services. Panlilio said subscribers with smart meters can manage their electricity usage and budget through consumption information, alerts and notifications.

“The AMI rules are not only for prepaid, but also for postpaid for the smart meters. The one million that we filed with ERC involves various cases of postpaid and prepaid, but all using smart meters,” he said.

“At some point, if a postpaid subscriber hooked on a smart meter decides to shift to prepaid, then that can be done. Part of the one million smart meters that we applied for is for replacement,” Panlilio said.

Meralco registered 6.5 million customers.  The company is targeting to have three million of its customers shift to smart meters four years from now.

“We have 6.5 million customers. Before I retire, I wish for even at least three million. By 2023, the plan that we submitted to ERC is three million subscribes on smart meters,” Panlilio said.

PRES, meanwhile, allows customers to buy prepaid credits to keep electricity going in their homes. It also allows customers to monitor and control their consumption through daily balance notifications.

The service is more affordable with denominations of as low as P100. Customers can reload anytime, anywhere through multiple loading channels such as Meralco business centers, Bayad Center outlets and e-load retailers.

The prepaid electricity service, is available in residential areas in the cities of Manila, Mandaluyong, Makati and Pasig, municipalities of Angono, Cainta, Binangonan, and Taytay in Rizal, and parts of Taguig, Pasay, San Juan, Paranaque, Novaliches, Caloocan, Cavite, Tagaytay and Bulacan.