By Lenie Lectura - January
21, 2019
THE planned 2 x 300 megawatt(MW)
circulating-fluidized bed (CFB) coal-fired power plant of Redondo
Peninsula Energy Inc. (RP Energy) in Subic, Zambales, may be converted to a
liquefied natural gas (LNG) facility.
This is one of the options being
considered by the power-generation arm of the Manila Electric Co. (Meralco)
whose unit, Meralco PowerGen Corp. (MGen), is a stakeholder of RP Energy.
MGen President Rogelio Singson said
this option is being discussed with “in-house experts” and that a decision on
what technology to pursue would be ready before the first half of year ends.
“We should be making a decision
within the first half of this year regarding what to do next. We would have
determined the technology and EPC [engineering, procurement and construction].
There are new technologies. It might no longer be CFB. We are also considering
LNG,” Singson said.
If the coal-power plant project
would be converted to LNG, Singson said the capacity would “depend on
economics.”
“It might not be that big, depending
on economics. In general, we’re saying we’re open to changing the technology
from original 2×300-megawatt (MW) CFB,” he said.
Separately, Meralco Chairman Manuel
V. Pangilinan said stakeholders have yet to be informed pending results of
ongoing studies.
“We have not raised it with them
yet; we’re still doing our studies. Hopefully, within the year. We need to know
whether that Subic plant is a go or a no go, whatever fuel source we eventually
adopt,” Pangilinan said.
RP Energy Inc. is a partnership
among Meralco, Aboitiz Power Corp. and Taiwan Cogeneration Corp. through
their respective subsidiaries.
AboitizPower COO Emmanuel Rubio said
recently RP Energy has cancelled the notice to proceed issued to the
EPC contractor, Doosan Heavy Industries & Construction Co. Ltd., and Azul
Torre Construction Inc.
Among others, Rubio cited “instability
in one of the slopes” and “a construction issue, something that was not
foreseen” by the project proponent.
Nonetheless, Rubio said, Meralco is
on top of the situation. “At the moment, it’s Meralco looking at a way to
manage the movement.”
Singson said the stability of the
site remains to be a challenge aside from the power supply agreement (PSA) that
is pending before the Energy Regulatory Commission (ERC).
RP Energy signed in April 2016 a
20-year PSA with Meralco for a contracted capacity of 225 MW. A separate
PSA for the balance of the 75 MW was also signed within the same year. Both
PSAs remain pending with ERC.
Without an ERC-approved PSA, the EPC
contractor refused to honor the extended EPC contract. It then presented to
Meralco a much-higher EPC cost, citing delays in the PSA approval.
“Without the PSA, we have no
recourse, but to call them off and say we will now open our options not just
with the Korean contractor. We’re now looking at other options. It might be new
technology,” he said.
“In the meantime, we are holding off
our site. We’re saying let this rainy season pass and see the stability of the
site. When the Koreans started, there was heavy rainfall. That also caused
some concern from the Koreans,” Singson said.
Pangilinan said an ongoing study
will also determine how the gas would be transported.
“Well, if we do convert into gas, it
will be a customer of the terminal. The question is how do we transport the gas
from the terminal in Batangas? We need to have a dedicated ship to the gas plant
in Subic. If the FSRU [floating storage and regasification unit] is in
Batangas, then how do you transport gas from Batangas to Subic, and what is the
cost building a pipeline? I think we’re studying it, not really sure if it’s
feasible,” Singson said.
“Now, if you build a big gas complex
that is a complement to the Batangas situation—3,000-MW capacity in Batangas
then that justifies a terminal,” Pangilinan said.
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