Published
March 27, 2017, 10:00 PM By Myrna M. Velasco
Prospective bidders in
the privatization of the 650-megawatt Malaya thermal power plant are still
baffled as to the definitive terms of the Department of Energy’s (DOE) proposal
for it to be converted into a liquefied natural gas-fired generating asset.
With many questions still
unanswered, it was gathered that the bidding date will be moved anew to April
15 this year from the March 30 re-scheduling advised earlier. The original
auction date was slated March 8.
According to Power
Sector Assets and Liabilities and Management Corporation (PSALM)
Officer-in-Charge Lourdes S. Alzona, “the final transaction document has yet to
be presented to the PSALM Board,” for the required approval.
According to qualified
bidders, they recently met with a DOE official to seek clarifications on Malaya’s
conversion plan to LNG.
Among the contentious
concerns raised had been on the LNG supply source and if there is already a
definite entity that will put up the import terminal and when will this be
coming on stream.
The bidders said they
have not gotten categorical answers yet from the DOE, thus, they are at a loss
as to how they would be packaging their offers at bid submission date.
In previous interview
with the media, Energy Secretary Alfonso G. Cusi indicated that he would want
PSALM to undertake a sensible study first on the planned gas fuel shift for the
Malaya facility.
The Malaya plant is
currently called upon as a “must-run-unit”, essentially taking the form of
“security asset” that could help stabilize grid supply when available capacity
runs tight either due to scheduled shutdowns or forced outages of power plants.
LNG is still being cast
as a future for the country’s energy sector, with state-run Philippine National
Oil Company (PNOC) envisioned to be taking the lead.
Plans have yet to take
off from blueprint though and deep-pocketed investors are still awaited to firm
up plans on portended billions of dollars of fresh capital outlay for the
evolving Philippine gas market.
PNOC, on its own, may
not have the technical expertise as well as the full financial muscle to put up
the integrated LNG facilities – starting from the LNG import terminal to
pipeline and distribution units and up to the anchor load power plants.
No comments:
Post a Comment