Group eyes Mindanao gas-fed power plant

Manila Bulletin

February 17, 2011, 11:42pm

 MANILA, Philippines – The Department of Energy (DoE) said a group is considering putting up a 300 megawatt liquefied natural gas-fired power plant in Mindanao.

Energy secretary Jose Rene Almendras said the undisclosed group has submitted the proposal to the World Bank and the International Finance Corporation (IFC) adding that “the discussions now are focused on who will do the master plan.”

The DoE earlier tapped the World Bank to help evaluate proposed LNG development projects in the country. The IFC is the lender's private sector development arm.

Aside from the multilateral lender, Almendras said that the Japan International Cooperation Agency is also "very interested in LNG (projects)."

The government is banking on the alternative fuel to help bridge a projected power supply deficiency in the short-term.

Unlike conventional generating facilities that take years to be put up, there are modular LNG power plants available in the market that could be connected to the grid in a shorter time.

Thus, Almendras said that LNG plants are suitable for Mindanao whose hydroelectric power plants output are susceptible to dry spells, especially during the summer months. These facilities comprise more than half of the region's power generating capacity.

"The reason for that Mindanao needs non-hydroelectric generation capacity. There are also coal plants being built, but we still need to import coal," he added. (JAL)