Tuesday, May 31, 2016

Industry expects ‘fast learning curve’ for new energy secretary



by Myrna Velasco May 30, 2016 (updated)

The energy sector is fervently wishing that incoming Energy Secretary Alfredo Cusi will be fast on the learning curve given the pressing concerns and issues yet to be addressed in various segments of the industry.
Many industry players have “lame expectations” of an appointment with barely zero energy background, although the others would still want to give Cusi the benefit of the doubt.
Overall though, the entire industry is yearning for an energy secretary who is practically  “returning from war” –  one who is enthusiastic and dedicated in helping solve the woes of the sector; not much like the disappointing ones that the sector had to deal and live with in recent years.
When asked by reporters, Alsons Consolidated Resources, Inc. chairman Tomas I. Alcantara, who is open on his support to the Duterte presidency, has this unsolicited advice to the incoming energy chief: “he has to do a lot of reading, a lot of studies.”
Alcantara reckoned that given the stature of the energy sector as a very critical component and backbone of the Philippine economy, “he (Cusi) has to move fast.”
The Alcantara group chair, who also served government previously via the Department of Trade and Industry, divulged that he had actually talked with Cusi when he congratulated him for being designated in the Department of Energy (DOE) portfolio and relayed that he has sounded off the same piece of advice to him.
Prior to this appointment, Cusi was general manager of the Manila International Airport Authority (MIAA) under the Arroyo administration. In that stint, he was not able to log a sterling performance because that was the period when the country’s aviation sector was downgraded to category 2. Most of Cusi’s professional experience had been in the transport sector.

Calamity damage to energy facilities hikes insurance cost



by Myrna Velasco May 30, 2016 (updated)

This was indicated by First Gen Corporation chairman Federico R. Lopez; while noting the clobbering climate-related events that struck their facilities in over a decade – with the worst ones just occurring in the last five years.
“Over the last 15 years, our geothermal energy facilities incurred damage from extreme weather events totaling over R9.0 billion,” Lopez said.
He reiterated that “more than 85-percent of this number was incurred only in the last five years” – the recorded most extreme of events so far had been the Yolanda (international name: Haiyan) disaster of 2013.
Lopez qualified that as a result, “insurance premiums at EDC (Energy Development Corporation) climbed from R243 million in 2011 to R682 million in 2015.” EDC is the subsidiary of First Gen which operates its geothermal assets.
He stressed “insurers are now beginning to see extreme weather events as everyday risk.”
In fact, the Lopez group is not just expanding its power generation business at this point, but has also been turning this into a crusade of patronizing only ‘cleaner energy sources’ so they stop becoming environment offenders and disaster-triggers.
“What has become clear to us is that weather patterns are no longer what they used to be and we need to quickly adapt to a changed planet,” Lopez averred.
He added that this is the reason why EDC “spent substantially on geohazard mapping, landslide mitigation and typhoon-proofing of our facilities last year.”
Turning their energy facilities resistant to extreme weather swings include “working with suppliers on new designs for our structures and vital sections of our power plants, built now to withstand the 300 kph (kilometers per hour) winds of the future,” Lopez stressed.
The company chairman said they also “employed a team of more than a dozen dedicated and well-equipped disaster response professionals who are currently dispersed at various plants.”
He added the team has been “constantly training our internal corps of volunteers, as well as teaching local communities and government units to be force multipliers and first-responders.”

Sarangani plant to boost Alsons income



by Myrna Velasco May 30, 2016 (updated)

The 105-megawatt Sarangani coal-fed plant of the Alcantara group will shore up its profitability by about R160 million this year, company executives have indicated.
According to Alsons Consolidated Resources, Inc. (ACR) chief financial officer Luis R. Ymson Jr., that estimate will account for the eight months of the plant’s commercial operations that kicked off April this year.
The level of income to be generated from the facility is anticipated to be higher for 2017 because its impact both on top and bottom lines will already be felt year-round.
“For 2016, it will be 29-percent more in revenues and 19-percent more in income…about R150 million to R160 million, that’s only for eight months,” Ymson noted.
Alsons Power Group president Tirso G. Santillan Jr. indicated that they are anticipating increased level of profitability at the latter part of the plant’s operations as their contractual arrangements generally set eventual acceleration in costs pass-on.
“The way our power supply contracts have been structured, initially the cost would be lower, but it will go up in the latter part of our operations…that is in terms of the SEC plant,” he expounded.
ACR chairman Tomas I. Alcantara emphasized that the first block of their Sarangani plant had been fully contracted. And even for Sarangani unit 2 which is due to break ground third quarter this year, its capacity is now similarly covered fully with bilateral contracts.
He said the off-takers (capacity buyers) are generally electric cooperatives (ECs) and the sole industrial capacity buyer is cement firm Holcim Philippines.
For the Alcantara group’s three blocks of coal plants, the total planned investment would be $1.0 billion – covering the two units of the Sarangani plant; and the 105MW San Ramon coal-fired plant in Zamboanga City.
It will be bankrolled by a typical project financing of 70:30 debt-to-equity ratio; which entails then that about $700 million will be funneled through bank borrowings.
Of the remaining projects yet to move headway into construction phase, the scale of investment for the Alcantara group and its partner Toyota Tsusho Corporation would be $600 million to $700 million. The equity portion alone would hover at $180 million to $210 million.

Oil companies to hike pump prices anew



by MB Online May 30, 2016 (updated)

Oil companies are set to hike pump prices on Tuesday, May 31, to reflect movements in the international petroleum market.
Seaoil, Shell, and Petron said that they will increase the price of gasoline by P0.35 per liter and diesel by P0.40 per liter.
They will also increase the price of kerosene by  P0.55 per liter.
Other oil companies are expected to adjust pump prices.
Last week, oil companies implemented a big hike in gasoline and diesel prices at P1.20 and P1 per liter, respectively.

Monday, May 30, 2016

Oil companies to hike pump prices anew



by MB Online May 30, 2016 (updated)

Oil companies are set to hike pump prices on Tuesday, May 31, to reflect movements in the international petroleum market.
Seaoil said it will increase the price of gasoline by P0.35 per liter and diesel by P0.40 per liter.
It will also increase the price of kerosene by  P0.55 per liter.
Other oil companies are expected to adjust pump prices.
Last week, oil companies implemented a big hike in gasoline and diesel prices at P1.20 and P1 per liter, respectively.