Govt may suspend biofuels law of ’06

Manila Standard Today
By Alena Mae S. Flores | Jul. 08, 2014 at 12:01am

The Energy Department said the government may suspend the implementation of the Biofuels Law of 2006 to maximize the operation of the 1,200-megawatt Ilijan natural gas plant in Batangas.

Energy Secretary Carlos Jericho Petilla told reporters he was studying the legal implication of the suspension of the Biofuels Law, which requires a two-percent biodiesel blend on all retail pumps and power plants running on diesel.

The Malampaya natural gas field is scheduled for shutdown in March next year to give way to maintenance works.

The Malampaya gas field in northwest Palawan provides fuel to the Ilijan and Sta. Rita and San Lorenzo power plants in Batangas.

Petilla said the Ilijan natural gas facility is set to run on biodiesel, or diesel with two percent coco-methyl ester, when the Malampaya natural gas facility is shut down in March nexct year.

Petilla, however, said the efficiency level of the 600-MW Ilijan plant would go down to just 420 MW once biodiesel was used.

“If we suspend [the law] we have additional 180 MW. I am looking at the legal aspect [of suspending it],” the energy chief said.

Petilla said the department woulod also address the mooring and fuel delivery issues for the other 600 MW unit of the Ilijan natural gas plant.

He said diesel fuel delivery was constrained because of mooring and storage problems at the plant, which id operated by Kepco Philippines.

“We want to maximize the Ilijan plant,” Petilla said.

Petilla said the government wanted to ensure the anticipated power supply “tight power supply” next year would be addressed.

The Sta. Rita and San Lorenzo power plants, meanwhile, runs on liquid fuel if the Malampaya field is shut down.

The Malampaya phase 3 development forms part of the $1-billion investment program of the Malampaya consortium to tap more gas from service contract 38 in northwest Palawan,

The phase involves the design, fabrication and installation of a new depression compression platform housing powerful compressors that will help draw out more gas from the reservoirs and deliver it for power generation.

The Malampaya project delivers 440 million standard cubic feet per day and the consortium wants to be able to sustain that production under its gas supply agreement with the power generators in Batangas. source