posted August 05, 2020 at 10:00 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/330642/meralco-rates-seen-stable-in-august.html
Power rates of Manila Electric Co., the country’s biggest distributor, will likely remain stable in August with a possibility of minimal decrease, according to a company executive.
“Currently, overall power rate movement looks to be flattish, due to improved power situation for the July supply month, stronger peso and quarterly repricing of Malampaya natural gas prices,” Meralco spokesman Joe Zaldarriaga said.
Zaldarriaga said Meralco was still waiting for the complete data and billings from power suppliers, but would announce the final rates soon. “There is a possibility for a minimal decrease in overall power rates and generation charge because of these factors,” he said.
He said there were no yellow alerts in July, and power supply was more stable compared to June, with lower demand in the Luzon grid.
Monday, August 10, 2020
Petron booked P14.2-b loss in first half as sales fell 40%
posted August 04, 2020 at 09:00 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/330492/petron-booked-p14-2-b-loss-in-first-half-as-sales-fell-40-.html
Oil refiner Petron Corp. said Tuesday it incurred a consolidated net loss of P14.2 billion in the first six months, a reversal of the P2.6-billion net income in the same period last year, as the company reeled from the impact of the coronavirus pandemic.
Petron said inventory losses reached nearly P15 billion in the first half because of the combined slump in demand, poor refining margins and collapse in prices.
“We continue to improve our productivity and reduce our expenses to help the company cope with COVID-19’s impact. At the same time, we have initiated cash preservation initiatives and prudently manage our capex [capital expenditures],” Petron president and chief executive Ramon Ang said in a statement.
Consolidated revenues also fell 40 percent to P152.4 billion in the first half from P254.8 billion in the same period last year. Sales volume from Philippine and Malaysian operations went down 19 percent to 41.9 million barrels from 51.9 million barrels a year ago amid a sharp decline in fuel demand because of COVID-19’s impact.
Domestic sales volume fell 28 percent on reduced consumption, particularly in aviation and retail, with the implementation of stricter quarantine protocols in the country.
Petron has a combined refining capacity of 268,000 barrels per day and produces a full range of world-class fuels and petrochemicals.
It said the worldwide lockdowns resulted in an unprecedented demand destruction which led to a sustained drop in oil prices, reaching record low levels in 26 years.
Petron said Dubai crude collapsed by almost 70 percent or $44 per barrel from January to April where oil price fell to as low as $13 per barrel in the daily trading. With the decline in oil consumption, refining margins also remained weak in the region.
Ang said he was optimistic of better figures in the second half as the economy slowly recovers.
“The company forecasts modest gains from inventory of about P3.5 billion in the second half of the year as prices start to recover. As the economy slowly reopens, we will need to find new ways to adapt to these new and unprecedented economic realities and remain resilient. Just as we have survived many hardships in the past, we know we can rely on our strong corporate culture to pull us through this most challenging period,” said Ang.
Nearly all Petron service stations have re-opened or resumed normal operating hours given the more relaxed quarantine restrictions.
Petron assured the public that its service stations remain safe and COVID-free. The company owns around 2,800 service stations where it retails world-class gasoline and diesel.
It said that on top of already stringent standards, stricter safety protocols are now in place at its service stations to ensure that customers and personnel are protected from any threats of the virus.
“Expanding our safety protocols at our stations was something that we immediately did at the start of the pandemic. This includes temperature checks for our personnel, wearing of face masks, physical distancing, more frequent sanitation, and even promoting cashless payment. We also enforce even more rigid guidelines to reduce health risks and keep our facilities and communities safe,” Ang said.
https://manilastandard.net/business/power-technology/330492/petron-booked-p14-2-b-loss-in-first-half-as-sales-fell-40-.html
Oil refiner Petron Corp. said Tuesday it incurred a consolidated net loss of P14.2 billion in the first six months, a reversal of the P2.6-billion net income in the same period last year, as the company reeled from the impact of the coronavirus pandemic.
Petron said inventory losses reached nearly P15 billion in the first half because of the combined slump in demand, poor refining margins and collapse in prices.
“We continue to improve our productivity and reduce our expenses to help the company cope with COVID-19’s impact. At the same time, we have initiated cash preservation initiatives and prudently manage our capex [capital expenditures],” Petron president and chief executive Ramon Ang said in a statement.
Consolidated revenues also fell 40 percent to P152.4 billion in the first half from P254.8 billion in the same period last year. Sales volume from Philippine and Malaysian operations went down 19 percent to 41.9 million barrels from 51.9 million barrels a year ago amid a sharp decline in fuel demand because of COVID-19’s impact.
Domestic sales volume fell 28 percent on reduced consumption, particularly in aviation and retail, with the implementation of stricter quarantine protocols in the country.
Petron has a combined refining capacity of 268,000 barrels per day and produces a full range of world-class fuels and petrochemicals.
It said the worldwide lockdowns resulted in an unprecedented demand destruction which led to a sustained drop in oil prices, reaching record low levels in 26 years.
Petron said Dubai crude collapsed by almost 70 percent or $44 per barrel from January to April where oil price fell to as low as $13 per barrel in the daily trading. With the decline in oil consumption, refining margins also remained weak in the region.
Ang said he was optimistic of better figures in the second half as the economy slowly recovers.
“The company forecasts modest gains from inventory of about P3.5 billion in the second half of the year as prices start to recover. As the economy slowly reopens, we will need to find new ways to adapt to these new and unprecedented economic realities and remain resilient. Just as we have survived many hardships in the past, we know we can rely on our strong corporate culture to pull us through this most challenging period,” said Ang.
Nearly all Petron service stations have re-opened or resumed normal operating hours given the more relaxed quarantine restrictions.
Petron assured the public that its service stations remain safe and COVID-free. The company owns around 2,800 service stations where it retails world-class gasoline and diesel.
It said that on top of already stringent standards, stricter safety protocols are now in place at its service stations to ensure that customers and personnel are protected from any threats of the virus.
“Expanding our safety protocols at our stations was something that we immediately did at the start of the pandemic. This includes temperature checks for our personnel, wearing of face masks, physical distancing, more frequent sanitation, and even promoting cashless payment. We also enforce even more rigid guidelines to reduce health risks and keep our facilities and communities safe,” Ang said.
Solons seek contract extension of Malampaya natural gas project
posted August 04, 2020 at 08:45 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/330487/solons-seek-contract-extension-of-malampaya-natural-gas-project-.html
Several lawmakers called for the contract extension of the Malampaya gas-to-power project in northwest Palawan to address an anticipated increase in future power demand.
The legislators filed House Resolution No. 1063 which calls for the implementation of national defense and security policies to attain independent and sustainable energy supply while focusing on extending the life of the Malampaya gas field.
“Malampaya plays a vital role in energy security. Is it enough? That’s the question. Natural gas is very affordable and dependable. Energy independence would help us sustain our rapid development,” said PHILRECA party-list Rep. Presley De Jesus during the virtual Kapihan ng Samahang Plaridel with the theme “Energy Independence Crucial to National Security.”
Gas production from the Malamapaya project under Service Contract 38 is expected to start to be depleted in the next few years. The Malampaya consortium led by Shell Philippines Exploration B.V. is asking the Department of Energy for an extension of the contract beyond 2024 to allow it to look for more gas prospects.
APEC party-list Rep. Sergio C. Dagooc said there was a need to secure the country’s energy needs as the COVID pandemic exposed the country’s vulnerabilities to the global oil supply
“Energy security is a crucial factor in protecting and upholding our national sovereignty, so we can keep domestic economies running at full power,” said Dagooc, adding that COVID-19 showed that it would not be sustainable to keep relying on foreign fuel sources.
Dagooc said they filed the resolution “to review our energy policies, so we can transition to energy independence.”
Ako Padayon party-list Rep. Adriano Ebcas warned that unless the government quickly addressed all the energy issues and rising power demand, “the Philippines may face an acute power shortage.” Alena Mae S. Flores
“These power shortages can have far-reaching effects—from access to energy and high energy cost, to livelihood, education, and of course, national security,” Ebcas said.
Philippine Energy Independence Council director and SPEX manager Don Paulino said there was a need to fast-track the development of more energy resources.
“This country will have further growth, social mobility, and deeper impact on society if we have energy security and independence. Energy demand will increase as the Philippines continues to grow. We need two to three times the supply we have right now,” Paulino said.
“This brings opportunities—now we have an opportunity to develop our indigenous, renewable and clean energy and transition from coal. This will result in more efficient and affordable energy,” he said.
SPEX owns a 45-percent stake in the Malampaya gas project one of the most successful public-private partnership arrangements in the Philippines which proves the country’s potential for energy security and independence.
Rozzano Briguez, president of PNOC Exploration Corp. which owns a 10-percent stake in the Malampaya gas project, said the Philippines should fast-track the development of its energy supply.
“We envision exploring new oil and gas sources to augment our Malampaya reserves,” Briguez said.
Malamapaya powers 30 percent of the country with natural, indigenous gas and accounts for 98 percent of domestic oil and gas production.
https://manilastandard.net/business/power-technology/330487/solons-seek-contract-extension-of-malampaya-natural-gas-project-.html
Several lawmakers called for the contract extension of the Malampaya gas-to-power project in northwest Palawan to address an anticipated increase in future power demand.
The legislators filed House Resolution No. 1063 which calls for the implementation of national defense and security policies to attain independent and sustainable energy supply while focusing on extending the life of the Malampaya gas field.
“Malampaya plays a vital role in energy security. Is it enough? That’s the question. Natural gas is very affordable and dependable. Energy independence would help us sustain our rapid development,” said PHILRECA party-list Rep. Presley De Jesus during the virtual Kapihan ng Samahang Plaridel with the theme “Energy Independence Crucial to National Security.”
Gas production from the Malamapaya project under Service Contract 38 is expected to start to be depleted in the next few years. The Malampaya consortium led by Shell Philippines Exploration B.V. is asking the Department of Energy for an extension of the contract beyond 2024 to allow it to look for more gas prospects.
APEC party-list Rep. Sergio C. Dagooc said there was a need to secure the country’s energy needs as the COVID pandemic exposed the country’s vulnerabilities to the global oil supply
“Energy security is a crucial factor in protecting and upholding our national sovereignty, so we can keep domestic economies running at full power,” said Dagooc, adding that COVID-19 showed that it would not be sustainable to keep relying on foreign fuel sources.
Dagooc said they filed the resolution “to review our energy policies, so we can transition to energy independence.”
Ako Padayon party-list Rep. Adriano Ebcas warned that unless the government quickly addressed all the energy issues and rising power demand, “the Philippines may face an acute power shortage.” Alena Mae S. Flores
“These power shortages can have far-reaching effects—from access to energy and high energy cost, to livelihood, education, and of course, national security,” Ebcas said.
Philippine Energy Independence Council director and SPEX manager Don Paulino said there was a need to fast-track the development of more energy resources.
“This country will have further growth, social mobility, and deeper impact on society if we have energy security and independence. Energy demand will increase as the Philippines continues to grow. We need two to three times the supply we have right now,” Paulino said.
“This brings opportunities—now we have an opportunity to develop our indigenous, renewable and clean energy and transition from coal. This will result in more efficient and affordable energy,” he said.
SPEX owns a 45-percent stake in the Malampaya gas project one of the most successful public-private partnership arrangements in the Philippines which proves the country’s potential for energy security and independence.
Rozzano Briguez, president of PNOC Exploration Corp. which owns a 10-percent stake in the Malampaya gas project, said the Philippines should fast-track the development of its energy supply.
“We envision exploring new oil and gas sources to augment our Malampaya reserves,” Briguez said.
Malamapaya powers 30 percent of the country with natural, indigenous gas and accounts for 98 percent of domestic oil and gas production.
Oil giant BP booked huge $16.6-b loss in 2nd quarter
posted August 04, 2020 at 08:15 pm by AFP
https://manilastandard.net/business/power-technology/330478/oil-giant-bp-booked-huge-16-6-b-loss-in-2nd-quarter.html
London, United Kingdom―BP plunged into a net loss of almost $16.85 billion in the second quarter, the British oil giant announced Tuesday, as the coronavirus pandemic ravaged demand for oil, sending prices tumbling.
“The ongoing severe impacts of the COVID-19 pandemic continue to create a volatile and challenging trading environment,” BP said in its earnings statement.
“Looking ahead, the outlook for commodity prices and product demand remains challenging and uncertain,” it added.
The quarterly loss after tax of almost $16.85 billion (14.10 billion euros) compared with net profit of $1.82 billion in the second quarter of 2019, BP said.
“In particular, our reset of long-term price assumptions and the related impairment and exploration write-off charges had a major impact,” said chief executive Bernard Looney.
Alongside its results, BP set out details on how it expects to achieve “net zero” carbon emissions for the company by 2050.
Switching from an international oil company to an “integrated energy company,” BP said that over the next decade its oil and gas production is expected to reduce by at least one million barrels of oil equivalent a day, or 40 percent when compared with 2019 levels.
“This coming decade is critical for the world in the fight against climate change, and to drive the necessary change in global energy systems will require action from everyone,” Looney said.
The Irish national, who became CEO of BP in February, had previously said he wanted “net zero” carbon emissions for the company by the middle of the century.
In the immediate future, BP must rebuild its finances and Looney has already decided to ax around 10,000 jobs, or 15 percent of its global workforce owing to the coronavirus fallout on energy demand and prices.
After companies worldwide closed their doors and airlines grounded planes at the height of the COVID-19 outbreak towards the end of the first quarter, oil prices dropped off a cliff, causing them to briefly turn negative.
Prices have however rebounded sharply in recent months as governments ease lockdowns and businesses slowly reopen.
In order to raise much-needed cash, BP recently announced the sale of its petrochemical business to privately-owned rival Ineos for $5.0 billion.
BP’s previous CEO Bob Dudley kick-started a $15-billion divestment program.
In the past year, the energy major also agreed to sell its Alaska operations to Hilcorp Alaska for $5.6 billion.
Together the disposals were aimed at recouping $10 billion to finance BP’s $10.4-billion purchase of US oil and gas operations belonging to mining group BHP Billiton.
https://manilastandard.net/business/power-technology/330478/oil-giant-bp-booked-huge-16-6-b-loss-in-2nd-quarter.html
London, United Kingdom―BP plunged into a net loss of almost $16.85 billion in the second quarter, the British oil giant announced Tuesday, as the coronavirus pandemic ravaged demand for oil, sending prices tumbling.
“The ongoing severe impacts of the COVID-19 pandemic continue to create a volatile and challenging trading environment,” BP said in its earnings statement.
“Looking ahead, the outlook for commodity prices and product demand remains challenging and uncertain,” it added.
The quarterly loss after tax of almost $16.85 billion (14.10 billion euros) compared with net profit of $1.82 billion in the second quarter of 2019, BP said.
“In particular, our reset of long-term price assumptions and the related impairment and exploration write-off charges had a major impact,” said chief executive Bernard Looney.
Alongside its results, BP set out details on how it expects to achieve “net zero” carbon emissions for the company by 2050.
Switching from an international oil company to an “integrated energy company,” BP said that over the next decade its oil and gas production is expected to reduce by at least one million barrels of oil equivalent a day, or 40 percent when compared with 2019 levels.
“This coming decade is critical for the world in the fight against climate change, and to drive the necessary change in global energy systems will require action from everyone,” Looney said.
The Irish national, who became CEO of BP in February, had previously said he wanted “net zero” carbon emissions for the company by the middle of the century.
In the immediate future, BP must rebuild its finances and Looney has already decided to ax around 10,000 jobs, or 15 percent of its global workforce owing to the coronavirus fallout on energy demand and prices.
After companies worldwide closed their doors and airlines grounded planes at the height of the COVID-19 outbreak towards the end of the first quarter, oil prices dropped off a cliff, causing them to briefly turn negative.
Prices have however rebounded sharply in recent months as governments ease lockdowns and businesses slowly reopen.
In order to raise much-needed cash, BP recently announced the sale of its petrochemical business to privately-owned rival Ineos for $5.0 billion.
BP’s previous CEO Bob Dudley kick-started a $15-billion divestment program.
In the past year, the energy major also agreed to sell its Alaska operations to Hilcorp Alaska for $5.6 billion.
Together the disposals were aimed at recouping $10 billion to finance BP’s $10.4-billion purchase of US oil and gas operations belonging to mining group BHP Billiton.
MORE Power accuses PECO of inflating power outage data
posted August 03, 2020 at 08:10 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/330397/more-power-accuses-peco-of-inflating-power-outage-data.html
Power distributor More Electric and Power Corp. slammed Panay Electric Co. for allegedly inflating the power outage data in Iloilo City before the Energy Regulatory Commission.
MORE Power, in its reply to a petition filed by PECO with the ERC for the restoration of its certification of public convenience and necessity, said PECO “desperately wanted MORE to look bad.”
“PECO manipulated the MORE numbers to artificially inflate the figures. PECO not only double counted, it counted one brown-out period 16 times. PECO included in its count two brown-outs that did not happen. PECO also counted a longer period than the actual period of brown out,” said MORE Power.
PECO alleged that Iloilo City experienced 1,424 minutes of power outages from Feb. 29 to July 16, 2020 based on MORE Power’s Facebook updates.
PECO said MORE Power’s own social media report showed that the accumulated power outages for the period was much higher than the System Average Interruption Duration Index of PECO for the same period in 2019.
However, MORE Power said PECO engaged in “multiple counting” which was not in accordance with the mandated method of recording interruptions under ERC Resolution No. 12, Series of 2008 (A Resolution Adopting the Guidelines for the Monitoring of Reliability Standards for Distribution Utilities).
MORE Power said that from Feb. 29 to July 16, there were only 182.13 hours of power interruptions and not 412.20 hours as alleged by PECO.
“PECO inflated the figures by counting multiple times a single interruption event,” MORE Power said.
MORE Power also said it achieved a much better SAIDI than PECO, as “PECO wrongly compared its erroneous 1,424 power outage minutes computation under MORE to PECO’s claimed SAIDI of 629 power outage minutes for the same period in 2019”.
MORE Power said its scheduled outages also contributed a large portion of the duration of the power interruptions under MORE.
“These scheduled outages were necessary because of the need for urgent maintenance works on various aspects of the dilapidated distribution system that MORE took over from PECO,” MORE Power said.
https://manilastandard.net/business/power-technology/330397/more-power-accuses-peco-of-inflating-power-outage-data.html
Power distributor More Electric and Power Corp. slammed Panay Electric Co. for allegedly inflating the power outage data in Iloilo City before the Energy Regulatory Commission.
MORE Power, in its reply to a petition filed by PECO with the ERC for the restoration of its certification of public convenience and necessity, said PECO “desperately wanted MORE to look bad.”
“PECO manipulated the MORE numbers to artificially inflate the figures. PECO not only double counted, it counted one brown-out period 16 times. PECO included in its count two brown-outs that did not happen. PECO also counted a longer period than the actual period of brown out,” said MORE Power.
PECO alleged that Iloilo City experienced 1,424 minutes of power outages from Feb. 29 to July 16, 2020 based on MORE Power’s Facebook updates.
PECO said MORE Power’s own social media report showed that the accumulated power outages for the period was much higher than the System Average Interruption Duration Index of PECO for the same period in 2019.
However, MORE Power said PECO engaged in “multiple counting” which was not in accordance with the mandated method of recording interruptions under ERC Resolution No. 12, Series of 2008 (A Resolution Adopting the Guidelines for the Monitoring of Reliability Standards for Distribution Utilities).
MORE Power said that from Feb. 29 to July 16, there were only 182.13 hours of power interruptions and not 412.20 hours as alleged by PECO.
“PECO inflated the figures by counting multiple times a single interruption event,” MORE Power said.
MORE Power also said it achieved a much better SAIDI than PECO, as “PECO wrongly compared its erroneous 1,424 power outage minutes computation under MORE to PECO’s claimed SAIDI of 629 power outage minutes for the same period in 2019”.
MORE Power said its scheduled outages also contributed a large portion of the duration of the power interruptions under MORE.
“These scheduled outages were necessary because of the need for urgent maintenance works on various aspects of the dilapidated distribution system that MORE took over from PECO,” MORE Power said.
Court approves tax compromise between Ilocos Sur and Luzon Hydro Corp.
posted August 03, 2020 at 07:50 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/330392/court-approves-tax-compromise-between-ilocos-sur-and-luzon-hydro-corp-.html
The regional trial court of Tagudin, Ilocos Sur approved the compromise agreement between Luzon Hydro Corp. and the provincial government of Ilocos Sur.
The move followed seven months of negotiations between LHC, a wholly-owned subsidiary of Aboitiz Power Corp., and the provincial government of Ilocos Sur on the assessment of the real properties in Alilem, Ilocos Sur.
Aboitiz Power said in a disclosure to the stock exchange Monday that the RTC promulgated its judgement based on the CA which it adopted in toto.
LHC and Ilocos Sur signed the CA for the settlement of the RPT case on July 22, then the parties filed it together with a joint motion for judgment to the RTC a day later.
LHC first filed a petition seeking to enjoin the municipal treasurer of Alilem, Ilocos Sur from auctioning the first batch of LHC properties in November last year.
LHC advised Aboitiz Power on Dec. 13, 2019 that it filed a second petition for prohibition and mandamus, with prayer for a temporary restraining order and preliminary injunction, to enjoin the municipality of Alilem from auctioning its real properties in the town.
This was after LHC received a notice of real property tax delinquency from the Office of the Municipal Treasurer of Alilem, Ilocos Sur seeking to collect P82.249 million in unpaid RPT and accrued penalties for seven properties, covering the period 2004 to September 2019.
The Municipal Treasurer then issued a notice of publication and auction sale covering five of the seven real properties of LHC, consisting of machineries.
Aboitiz Power said the RTC issued another TRO enjoining the municipality of Alilem from selling at public auction another set of LHC’s real properties for a period of 20 days.
LHC asked for a TRO and asked for the executive orders issued by the Office of the President directing the reduction of RPT on property, machinery and equipment actually and directly used by Independent Power Producers under Build-Operate-Transfer contracts and condoning related RPT interest and penalties.
LHC owns, operates and manages the 70-megawatt Bakun AC run-of-river hydropower plant in Amilongan, Alilem, Ilocos Sur. The plant was constructed and operated under the government’s BOT scheme.
PXP Energy’s net loss widened to P56.3 million in first six months
posted August 03, 2020 at 07:40 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/330384/pxp-energy-s-net-loss-widened-to-p56-3-million-in-first-six-months.html
PXP Energy Corp. said Monday net loss widened to P56.3 million in the first half from P17.9 million in the same period last year following the substantial decrease in oil revenues and impairment loss in service contract 14C-1 or Galoc oil field.
PXP said in a disclosure to the stock exchange that consolidated net loss attributable to equity holders of the parent company reached P44.4 million, also wider than the P7.6-million loss in the same period in 2019.
Core net loss reached P26.9 million in the six-month period, compared to P24.2-million a year ago.
Consolidated petroleum revenues dipped 88.1 percent to P6.1 million from P51.4 million last year, given the 66-percent decline in output following normal decline rate in field production and 62-percent slump in crude oil prices in the Galoc field in northwest Palawan.
Consolidated costs and expenses went down by 46.7 percent in the first six months to P39.5 million from P86.2 million a year earlier, brought about by lower depletion cost in SC 14C.
PXP Energy’s provision for impairment of assets amounted to P20.2 million related primarily to the lower-than-expected future returns in the Galoc field following the crash in global crude oil prices and the cessation of operation for Galoc Field on Sept. 24.
The Galoc Production Co. received of a notice of termination from Rubicon Offshore International, the owner of the floating production storage and offloading vessel, Rubicon Intrepid.
The Galoc oil field has been in production since 2008 and has yielded nearly 20 million barrels of oil since then.
PH to build modular nuclear power plants
posted August 02, 2020 at 06:35 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/330284/ph-to-build-modular-nuclear-power-plants.html
The Philippines may soon establish modular nuclear power plants off the grid, subject to the issuance of relevant legislative laws, the Department of Energy said over the weekend.
Energy Secretary Alfonso Cusi said during an international nuclear forum the government already projected the inclusion of nuclear power in the Philippine Energy Plan by 2027.
He said the possibility of establishing a modular power plant in the country might come sooner, given the evolution of small modular reactors that are suitable for the off-grid or island areas following the passage of the Executive Order 116.
President Rodrigo Duterte signed EO 116 creating the nuclear energy program inter-agency committee headed by the DOE. Its primary mandate is to study the possibility of tapping nuclear power and include it in the country’s energy mix.
“This would depend on the passage of necessary legislative policies on nuclear power, which are among the bills that have been certified as urgent, and must be passed by the present Congress,” Cusi said.
Meralco allocates P20b for 2021 capex
posted August 02, 2020 at 06:30 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/330283/meralco-allocates-p20b-for-2021-capex.html
Power retailer Manila Electric Co. allocated a budget of P20 billion for 2021 capital expenditures.
Jose Ronald Valles, head of Meralco’s regulatory affairs, said the company plans to file the capex application with the Energy Regulatory Commission this week.
“That’s the usual load growth and reliability and network capex, and capex for smart meters to address what’s happening today,” Valles said, adding that Meralco sought approval to install 100,000 smart meters.
Meralco implemented a P6.9-billion capex budget in the first six months this year, or 36 percent lower than in 2019 as a result of the imposition of the community quarantine and limited resumption of projects and operations across all sectors.
Meralco chairman Manuel Pangilinan said while power demand was slightly going up, the country’s economic growth recovery would be dependent on the availability of vaccine for COVID-19.
“Hopefully by year-end…It will take us a while… because we are not first round of recipient of the vaccine,” Pangilinan said.
DOE endorses $50M oil, gas exploration deals
posted July 31,2020 at 09:45 pm by Alena Mae S. Flores
The Department of Energy endorsed two oil and gas exploration applications with total investments of $50 million for the approval of President Rodrigo Duterte.
The applications are part of the agency’s Philippine Conventional Energy Contracting Program, which aims to boost investment opportunities in oil and gas exploration activities and develop indigenous petroleum resources within undisputed Philippine sovereign territory.
“A total of two applications—one from an area nomination located in Northwest Palawan and one from a pre-determined area in Eastern Palawan, with total investments of about $50 million, were recommended for approval/awarding by President Duterte,” according to the latest report of the DOE.
The DOE did not disclose the names of the PCECP applicants. Under the PCECP, the awarding of service contracts are conducted through a competitive selection process or nomination.
In the nomination process, interested companies may submit their letter of intent on the proposed area for nomination. The agency will then notify the proponents to publish their nomination, which will be subject to challenge within 60 days from publication.
The department sought bids to explore oil and gas in the Sulu Sea Energy for Area 1, northwest Palawan for Area 2, Southeast Luzon for Area 3 , Northeast Palawan for Area 4 and Mindoro-Cuyo basin for Area 5 under the competitive selection process.
Energy Secretary Alfonso Cusi seeks to reinvigorate the petroleum exploration and development activities in the country to serve as a cushioning measure against the volatility of oil prices, which have a direct impact on the costs of transport and power.
“We cannot be at the mercy of global energy market volatilities and other geopolitical movements. In this light, we launched the Philippine Energy Contracting Program... to facilitate the exploration and development of our indigenous energy resources, and revitalize our upstream oil and gas sector,” Cusi said earlier.
There are around 20 active petroleum service contracts in the Philippines with Shell Philippines Exploration, Total E&P, PNOC-EC, Nido Petroleum, Philodrill, PXP Energy and Galoc Production Company as among the few DOE operator-partners.
PSALM raises P36.23M from selling real estate assets
Eireene Jairee Gomez August 9, 2020
The Power Sector Assets and Liabilities Management Corp. (Psalm) has successfully privatized its real estate assets in Nasipit in Agusan del Norte and Maco in Compostela Valley, raising a total of P36.23 million that can be utilized to pay for remaining liabilities of the National Power Corp. (NPC).
In a statement, Psalm said the lot in Maco with an area of 1,595 square meters was awarded to Therma Marine Inc. with it winning bid amounting to P3.20 million, and the lot with an area of 3,395 sqm in Nasipit was awarded also to Therma Marine Inc. for P4.41 million.
Psalm said the real estate assets covered by the privatization process also included three lots with a total area of 10,596 square meters in Agusan and Manolo Fortich in Bukidnon, with the winning bid offer coming from FG Bukidnon Power amounting to P28.61 million.
All the bid offers were above the minimum bid prices approved by the PsalmBoard of Directors. In compliance with the Psalm policies, the basis used for the minimum bid price was the higher valuation out of the two external appraisal reports that were done on the said real estate assets.
“We are glad that the privatization activity was successful despite the pandemic… The proceeds will be used by us to pay the remaining financial obligations that we got from the National Power Corporation,” said Psalm President and Chief Executive Officer Irene Besido Garcia.
The results of the bidding exercises will be subject to post-qualification process to ensure that the winning bidders met all the financial and legal requirements as indicated in the asset sale provisions, Psalm said.
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