Thursday, February 1, 2018

Cusi pushes energy resiliency policy



 (The Philippine Star) |

MANILA, Philippines — Energy Secretary Alfonso Cusi said the implementation of an energy resiliency policy is critical in securing power supply, particularly in Albay province which was directly affected by Mayon Volcano’s eruption.
In a coordination meeting in Albay held over the weekend, the energy chief emphasized the significance of implementing the recently issued energy resiliency policy in which energy stakeholders are tasked to submit their compliance plan reflecting the energy resiliency measures they opt to undertake.
“Your experience in resiliency must be seen in this current situation with Mayon (Volcano),” Cusi said.
The DOE has issued a circular adopting energy resiliency in the planning and programming of the energy sector to mitigate potential impacts of disasters.
A Resiliency Compliance Plan (RCP) will be implemented to contain minimum adaptation measures, including both structural and non-structural measure options, to gauge infrastructure and human resource preparedness during and in the aftermath of disruptive events.
All industry players are required to submit their respective RCPs within six months, which shall be reviewed every three years. They should also include a budgetary requirement of the
The circular also creates the Task Force on Energy Resiliency to oversee the implementation of the policy.
The coordination meeting was attended by the members of the generation, transmission and distribution sectors, officials of the local government units of Albay headed by Gov. Al Francis Bichara, Rep. Christopher Co and Rodel Batocabe from Ako Bicol party-list.
The generation sector – represented by AP Renewables Inc., Philippine Geothermal Production Co. Inc. and Energy Development Corp. (EDC)—said their geothermal plants remain the same and that they are already implementing their resiliency plans that include the protection of their employees.
AP Renewables and Philippine Geothermal Production Co. own and operate Tiwi geothermal plant while EDC runs the BacMan geothermal plants in Albay.
The National Grid Corp. of the Philippines (NGCP), representing the transmission sector, said its facilities are normal operations.
The NGCP is particularly looking into the protection of its transmission facilities that connects Luzon and the Visayas. It also conducted preventive maintenance procedures that included the cleaning up of the lines in a manner that did not result in any power interruption.
For the distribution sector, the National Electrification Administration and Albay Electric Cooperative Inc., with its concessionaire, Albay Power and Energy Corp., said the distribution services are generally under normal conditions with the exception of a few barangays in the danger zone.
They also stated that they are closely coordinating with the NGCP in the distribution operations.
Additionally, due to ash fall, Co raised the need to address the distribution poles that obstruct the road expansion and rehabilitation projects of the Department of Public Works and Highways (DPWH).
Cusi said there is a joint issuance signed by the DOE and DPWH, addressing the funding issue where the infrastructure project covers the transfer of the distribution poles and preventing another “pass on” item to consumers.
Meanwhile, the DOE has signed a memorandum of understanding with the Girl Scouts of the Philippines (GSP) to formalize an educational partnership on energy conservation as part of its E-Power Mo EnerKids Program.
Under the partnership, the DOE will conduct lectures on basic electricity concepts and energy consumption of various appliances to batches of Girl Scouts nationwide. DOE’s E-Power Mo Lecturers will also conduct hands-on experiments for Girl Scouts in the provinces.
The DOE-GSP MOU intends also to encourage girl scouts to pursue energy-related careers by stimulating their interests and passion despite the challenges in gender stereotyping.
The MOU also provides for the DOE and GSP to organize and conduct educational and training programs geared towards encouraging young girls to take up courses on science, technology and energy; implement other activities that would promote energy conservation and formulate guidelines defining the specific activities, roles and responsibilities of the DOE and the GSP in the implementation of the E-Power Mo Programs.

ADB, PNOC ink deal on LNG advisory services



 (The Philippine Star) |

MANILA, Philippines — The Asian Development Bank (ADB) will be advising the Philippine National Oil Co. (PNOC) on the liquefied natural gas (LNG) hub project in Batangas which is planned to be carried out with private sector participation this year. 
ADB announced that a transaction advisory services agreement was signed between Takeo Koike, officer-in-charge of ADB’s Office of Public-Private Partnership (OPPP), and Reuben Lista, president and CEO of PNOC. 
Under the agreement, OPPP will advise and assist PNOC in all aspects of the project including the award and execution of the final project project agreements. 
The project, which would cost up to $2 billion, will consist of a regasification terminal, storage, power plant and other related infrastructure. 
Due to the imminent depletion of domestic gas reserves at the Malampaya gas field in Palawan, which provides a substantial amount of power supply in the country, PNOC is developing  sustainable gas supply strategy through the establishment of an LNG hub in Batangas.
ADB said the project is in line with its “increasing focus on environmentally sustainable infrastructure and private sector participation.” 
 “The Philippines’ first LNG hub will help in ensuring long-term energy security to the Philippines and source a cleaner energy resource,” said Siddhartha Shah, principal PPP specialist. 
“It will also increase energy access and create new demand in the power, transportation, and industrial sectors in Luzon and in neighboring islands,” he added. 
State-run PNOC has received several unsolicited proposals for the project, some of which are from three foreign firms: Korea Electric Power Corp., Lloyds Energy Group and China National Offshore Oil Co.
PNOC said bidding out the project is also an option if none of the unsolicited proposals meet government requirements.

First Gen dangles ‘reverse proposal’ on LNG project



Published By Myrna M. Velasco

The “unsolicited proposal” tendered by First Gen Corporation to state-run Philippine National Oil Company (PNOC) takes a “reverse track,” because instead of the Lopez firm joining the government-underpinned liquefied natural gas (LNG) project, it has instead invited the latter to be its partner on its blueprinted LNG import facility.
That was divulged by the chair of the Technical Working Group (TWG) of PNOC, basing it on correspondence that they have had with the Lopez firm.
The PNOC official qualified though that “we still consider their offer as part of the unsolicited proposals we received for our LNG project … but it is just a different mode from what we have had intended for our planned facility.”
The source added that “the offer of First Gen has not been opened yet,” as the state-run company is still evaluating the third “unsolicited proposal submission” – and that is from Lloyds Energy Group.
The energy executive emphasized that two offers were “returned,” but one of them came up with a revised ‘unsolicited offer’ and submitted it just several hours from the time its original tender had been given back.
“The process of our evaluation depends on ‘first on time’ submission,” the source added, noting that the first investor-groups that lodged their offers will also be priority on the evaluation and review queue.
Meanwhile, on First Gen’s LNG import facility project, this has been on its blueprint 3-4 years ago already, but it got stalled for some time on its selection of strategic partners.
Company executives previously indicated that they have been in talks with prospective Asian and European partners, but until now, there had been no “tie up deal” cemented so far.
The Lopez firm crunched tentative investment cost of US$1.0 billion for the LNG regasification and import terminal, at a capacity of 5.0 million tons per annum.
On that scale, company executives reckoned that the facility would be able to support the fuel needs of the existing plants in the country, plus the anticipated “new builds” in the sector.
Post the productive years of the Malampaya gas field, it is anticipated that gas-fired electricity generation will now be left generally into the hands of the Lopezes as the Ilijan plant is now mulled for conversion into a diesel-fired power facility.