Aboitiz Power explores LNG project

Published January 16, 2019, 10:00 PM By Myrna M. Velasco

https://business.mb.com.ph/2019/01/16/aboitiz-power-explores-lng-project/

Listed firm Aboitiz Power Corporation is exploring the possibility of investment plunge into liquefied natural gas (LNG)-fired power plant as well as new ventures in utility-scale solar farm installations.

In discussion with reporters, Aboitiz Power Chief Operating Officer Emmanuel V. Rubio noted that LNG is part of the investment option they have been casting, although he indicated that final cost-to-the-consumer is still a major point of contention.

“We’re looking at the price point…like is it going to be competitive as base load? That’s a major consideration,” he stressed.

For gas-fired power project sponsors in the country, there have been recent moves to anchor LNG pricing with coal in their targeted gas supply contracts – because coal-fired power generation is seen as the toughest competitor for gas-fed generating facilities.

Beyond that, Rubio emphasized that the Aboitiz firm is in parallel looking at the next move of the government – chiefly the Philippine National Oil Company (PNOC) – on the unloading of the banked gas from the Malampaya field.

The sale of the banked gas had already been set several times on the auction block, but there had been no viable buyer accepted yet by relevant government entities.

As far as the solar investment space is concerned, Rubio said their company is getting heavy into “land banking” for prospective sites of their targeted ground mounted solar projects.

To date, Aboitiz Power has roughly 200 hectares for planned solar ventures – which at 1.0 megawatt (mw) to 1.3 hectare-ratio on project development, that could yield more than 150MW of solar installations.

Rubio noted that the non-exclusivity of franchise being initiated by one solar power developer is seen as an opportunity for players to expand in the solar sector.

“It’s an opportunity because it can open up that market (solar), especially if it’s going to allow other parties to apply for a franchise, so we’re watching developments on that,” the Aboitiz executive qualified.

The targeted solar projects of Aboitiz Power are concentrated in Luzon grid for now – primarily in the northern corridor of the island, according to Rubio.