Investors eye LNG plant in Mindanao

Manila Times.net

BY EUAN PAULO C. AÑONUEVO REPORTER

A GROUP has proposed to put up a liquefied natural gas (LNG) plant in
power-starved Mindanao.

Department of Energy (DOE) Secretary Jose Rene Almendras said the undisclosed group is keen on putting up a 300-megawatt LNG power generation facility in the region.

“The proposal is with [the] World Bank and IFC. The discussions now are focused on who will do the master plan,” he said.

The DOE earlier tapped the World Bank to help evaluate proposed LNG development projects in the country. The International Finance Corp. is the multilateral lender’s private sector development arm.

Besides the World Bank group, the Japan International Cooperation Agency is also “very interested in LNG,” Almendras said.

LNG is natural gas that is temporarily liquefied so that it could be transported over long distances without the need for pipelines.

The Philippines is looking to the alternative fuel to help bridge a projected power supply deficiency in the short-term.

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

Almendras said that LNG plants are suitable for Mindanao whose hydroelectric power plants are susceptible to dry spells, especially during the summer months. Hydro 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 still we need to import coal,” the DOE chief said.

The government projects the country requiring $40.6-billion worth of investments in the energy sector through 2030.

The Luzon grid would require an additional capacity of 11,900 megawatts (MW) for that period, while the Visayas and Mindanao grids would need 2,150 MW and 2,500 MW.

The Aquino administration is aiming for economic growth of seven to eight percent until 2016.

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