Solons ask IATF for help to restore water, power to Pangarap Village residents

Published June 1, 2020, 9:10 PM By Ben Rosario

https://news.mb.com.ph/2020/06/01/solons-ask-iatf-for-help-to-restore-water-power-to-pangarap-village-residents

The House of Representatives on Monday (June 1) called on the Inter-Agency Task Force for the Management of Emerging Infectious Diseases (IATF) to swiftly intervene on behalf of some 40,000 Caloocan City residents who have been denied water and electricity services for most of the three-month enhanced community quarantine (ECQ) period.

Acknowledging the urgency of addressing the plight of residents of Pangarap Village, lawmakers immediately approved the appeal of Caloocan City Rep. Edgar Erice to seek the IATF’s help.

“Wala silang tubig, walang kuryente. Walang puso sinuman ang gumagawa nito (They have no water, no electricity service. Whoever is behind these is merciless),” Erice said in a privilege speech.

Pangarap Village residents have been virtually trapped in a portion of a 156-hectare property in Caloocan City that was declared alienable and disposable during the Martial Law era by then-President Marcos.

Erice said they have been locked in a long legal battle with the private real estate developer Carmel Development Inc. (CDI) which eventually won a Supreme Court decision in its favor.

However, the lawmaker noted that there remains no court-approved order to evict the residents.

“Yet their basic human rights are being violated by this big development company. They are being harassed and forcibly evicted, but residents have barricaded themselves in their community,” Erice revealed.

The veteran lawmaker aired his strong suspicion that the damage to the water main and the electric transformer was deliberate in a bid to pressure residents into leaving the area.

He accused CDI and its security personnel of driving away repair crews sent by Meralco and Maynilad Water Services Inc. to reinstall the power and water connections, respectively.

“Residents in Pangarap have to shell out P80 each day to be able to connect to a power generator,” he said.

The Lower House asked the IATF to use its emergency powers under the Bayanihan to Heal as One Law to reinstall the water and electrical connection to the community.

Buhay Party-list Rep. Lito Atienza said the IATF should also assist the affected residents in pursuing legal action against CDI.

Apex Mining earnings up 28% to P306 million in 2019

Louise Maureen Simeon (The Philippine Star) - June 3, 2020 - 12:00am

https://www.philstar.com/business/2020/06/03/2018229/apex-mining-earnings-28-p306-million-2019

MANILA, Philippines — Apex Mining Co. Inc. reported a consolidated net income of P306 million in 2019, up 28 percent from the P239 million recorded in 2018 amid higher production output and better global prices.

In a regulatory filing, Apex said revenue was six percent higher at P5 billion in 2019,  a new record revenue for the firm.

For the whole of 2019, milling throughput increased to 711,788 metric tons, averaging at 2,063 MT per day compared to 609,604 MT, averaging at 1,789 MT per day in 2018.

Recoveries were also at 85.5 percent for gold and 75.5 percent for silver, both higher than last year’s 84.8 percent and 71.7 percent, respectively.

Year-on-year, the lower ore grades averaging 3.19 grams of gold and 20.47 grams of silver per MT contributed to the reduced gold sales to 64,763 ounces this year from 66,053 ounces.

Silver sales, however, increased by 22 percent to 369,616 ounces from 303,385 ounces.

Further, metal prices averaging $1,389 per ounce for gold and $16.14 per ounce for silver were the highest in recent years.

This compares to the average prices of $1,260 and $15.49 per ounce for gold and silver, respectively, in 2018.

“The higher milling tonnage and recovery rates helped in minimizing the reduction in gold output while at the same time increasing our silver production,” Apex Mining president and CEO Luis Sarmiento said.

“The strengthening of the metal prices toward the latter part of the year, with gold breaking above $1,500 per ounce and silver reaching $17 per ounce, somewhat offset our lower production,” he said.

The continuing investments in capital expenditures, which last year amounted to P1.7 billion, increased non-cash charges for depreciation and amortization to P691 million, 23 percent higher.

These investments were in relation to the continuing development of the mines in preparation for higher grade and larger tonnage operations.

Phoenix Petroleum halves 2020 capex

Danessa Rivera (The Philippine Star) - June 1, 2020 - 12:00am

https://www.philstar.com/business/2020/06/01/2017822/phoenix-petroleum-halves-2020-cape

MANILA, Philippines — Phoenix Petroleum Philippines Inc. is slashing its 2020 capital expenditure (capex) by half as part of rationalizing its spending amid the coronavirus disease 2019 or COVID-19 pandemic.

“We are cutting capex to P1.5 billion and focusing on projects that are immediately revenue generating,” Phoenix Petroleum CFO Concepcion de Claro said during the company’s virtual stockholders’ meeting last week.

The revenue-generating investment would zoom in on retail and liquefied petroleum gas (LPG) related projects, de Claro said.

Originally, the capex for this year was set at P3 billion, Phoenix Petroleum company vice president for external affairs Raymond Zorrilla said in a text message.

Phoenix Petroleum’s retail and LPG businesses were the major revenue drivers in the first five months.  

Phoenix Petroleum COO Henry Albert Fadullon said the oil firm still managed to grow its retail and LPG sales volume despite the negative factors in the first quarter, such as the price volatility caused by the trade tension between the US and China, and the geopolitical tensions between the US and Iran, as well as the Taal Volcano eruption which threatened its storage facilities in the south and disrupted fuel transport and retail service operations.

“Against this backdrop, we were able to sustain volume growth in key segment, particularly in retail and LPG,” he said.

Meanwhile, Phoenix Petroleum registered record sales in the LPG business segment during the quarter, and sales growth continued well into the enhanced community quarantine period.

“Ninety five percent of our retail sites and LPG stores are open. LPG and domestic cylinder sales are at an all-time high of 39 percent growth versus same period last year,” Fadullon said.

“April, the first full month on lockdown, was brutal with sales hovering around 50 to 60 percent from pre-lockdown levels except LPG, which continued to post strong growth, the one bright spot in the portfolio during the crisis,” he said.

Apart from reducing capex, the oil firm has also taken other cost-reducing measures to preserve its resources and mitigate losses amid the pandemic.

“We’re taking about P800 million in savings mostly sourced from marketing, advertising and travel as we shift resources from traditional channels to digital. These cost actions will help keep our capex in line with the expected weaknesses in demand this year,” de Claro said.

The oil firm also immediately delayed imports for finished products to lower inventory levels. 

“As a result, our inventory levels are only 50 percent of terminal capacity,” Fadullon said.

Moving forward, the company sees demand picking up, especially once the quarantine measures are relaxed.

“Despite the near term pressures and uncertainties today, we are confident that the business plan we have, which is investing more on higher margin and higher growth businesses such as retail and LPG, and the financial discipline will not only preserve resources but also ensure that we will remain well positioned and will thrive when the industry recovers,” de Claro said.

PH refineries’ utilization down 58% last year

Published May 31, 2020, 10:00 PM By Myrna M. Velasco

https://business.mb.com.ph/2020/05/31/ph-refineries-utilization-down-58-last-year

Utilization of the country’s two refineries had been down 58.8 percent in 2019 compared to a more robust run of 83.1 percent in 2018, according to a report of the Department of Energy (DOE).

The department said the lower utilization of the refineries of Petron Corporation and Pilipinas Shell Petroleum Corporation had been “due to consecutive maintenance shutdown,” that were implemented by the two companies last year.

“This resulted in a decrease in volume of crude processed at the refineries for year 2019 by 29.3 percent from 86,555 MB (thousand barrels) of year 2018 to 61,169 MB,” the DOE said.

Further, the agency indicated that domestic petroleum refinery output had dropped 30.8 percent to 59,000 MB in 2019 versus a relatively thriving scale of 85,958 MB the year before.

The energy department emphasized that because of lower utilization rate, average refining output had just been at 163,000 barrels per stream day, out of the combined maximum crude distillation capacity of the two refineries at 285,200 barrels per stream day.

Consequently, it was noted that the country’s crude imports last year declined by 27.1 percent to 62,531 MB vis-à-vis the previous year’s 85,753 MB.

“The decrease was attributed to the emergency and successive maintenance shutdown/turnaround schedules of the two refineries in the country,” the DOE has reiterated.

The bulk of the country’s crude oil imports had been sourced from the Middle East with 71.9 percent share – of which 25.5 percent came from Kuwait for 15,925 MB, replacing Saudi Arabia as top supplier of crude oil into the Philippines, with the oil kingdom’s share skid¬ding to 24.8 percent.

Other major sources of crude imports had been the United Arab Emirates with 20.1 percent fraction in the pie; followed by Russia with 15 percent share; while the rest are from the Far East region, Brazil, United States, Australia, Taiwan, South Korea and Nigeria.

Conversely, the lower run of the refineries, the DOE stressed “resulted in high imports of finished petroleum products,” even for Petron and Pilipinas Shell “to augment their supply requirements and to ensure continuous supply during the period of shutdown.”

Parts of Luzon to experience power interruption starting June 1

Published May 31, 2020, 1:52 PM By MB Online

https://news.mb.com.ph/2020/05/31/parts-of-luzon-to-experience-power-interruption-starting-june-1/

Parts of Luzon will experience scheduled power interruptions starting Monday, June 1, until Sunday, June 7, due to maintenance works.

In an advisory, Manila Electric Company (Meralco) announced that some barangays in the cities of Manila, Taguig, and Muntinlupa will experience power interruptions.

The power cuts are due to preventive maintenance for upgrading,  installations, re-conductoring works, line reconstruction and conversion works, and replacement of electricity poles.

Power interruptions will also affect some barangays in the provinces of Laguna, Cavite, and Bulacan.

Mixed oil price adjustments seen

Published May 31, 2020, 10:00 PM By Myrna M. Velasco

https://business.mb.com.ph/2020/05/31/mixed-oil-price-adjustments-seen

As the country gears up for wider economic re-opening, the price of kerosene product, which is also considered a base for aviation fuel, is set for an uptick this week by estimated ₱0.60 to ₱0.80 per liter.

Diesel which is the main commodity used by the country’s public transport is likewise anticipated to increase by ₱0.20 to ₱0.30 per liter by Tuesday (June 2), which is the usual price adjustment day of the oil companies.

A financial relief can be momentarily enjoyed by motorists filling up gasoline into their vehicles – as the price of this product is expected to be on a marginal rollback of ₱0.10 to ₱0.25 per liter – or it could even be a “no price movement week” for this commodity.

The Philippine aviation sector and other major oil-consuming industries have been prepping for resumption of operations this week after President Rodrigo Duterte finally downgraded lockdown in the country’s main metropolis to general community quarantine.

It will also be a return-to-work for higher percentage of Filipino workers, hence, it is seen that petroleum sales will be buoyed again after more than two months of slump because of the coronavirus health crisis that practically stalled the movements of people as well as economic activities.

NGCP secures additional ancillary services

Danessa Rivera (The Philippine Star) - May 31, 2020 - 12:00am
https://www.philstar.com/business/2020/05/31/2017622/ngcp-secures-additional-ancillary-services

MANILA, Philippines — The National Grid Corporation of the Philippines (NGCP) has secured additional ancillary services to ensure stable power supply in the Luzon power grid over the next five years.

This as the Energy Regulatory Commission (ERC) cleared the ancillary services procurement agreement (ASPA) of NGCP with Prime Meridian Powergen Corp. (PMPC).

The grid operator’s ancillary service with PMPC—which will run for five years—will be sourced from the 97-megawatt (MW) San Gabriel Avion natural gas-fired power plant in Batangas.

It covers up to 45 MW regulating reserve (RR) at P2.25 per kwh rate for the firm contracted capacity, up to 45 MW at P3 per kwh for the non-firm or when the firm capacity is not scheduled, and up to the full capacity of the two-unit plant for black start support.

Regulating reserve is the capacity allocated to cover inter and intra-hour variations in demand and is equivalent to four percent of the demand in a specific hour.

The black start support, on the other hand, will provide available capacity to energize the power restoration highway and synchronize to the rest of the grid.

ERC also issued a provisional authority to NGCP and AP Renewables Inc. for their ASPAs which have a term of five years.

Located in Laguna, Makban geothermal plants A and B have two units with a capacity of 63.2 MW each.

NGCP procured ancillary services in the form of reactive power support with AP Renewables’ Makban Geothermal Plant A and B for five years.

Reactive power support refers to the generating units’ capability to inject or absorb reactive power from the grid to maintain the voltage within the standard levels set by the Philippine Grid Code, and support the reliable transmission of electrical power from generating power plants to the consumers.

NGCP said the Luzon grid has not yet reached the desired levels of contracted ancillary services necessary for the system security and reliability.

“As the demand for power in the Luzon increases, the requirements of the system to ensure stability, reliability and security likewise increases. Ensuring the integrity of the system is essential to protect the interests of the public,” the grid operator said.

Ancillary services are necessary to support the transmission capacity, maintaining reliable operation of the transmission system and electricity supply in the grid.

DOE sets GCQ protocols for energy companies

Published May 30, 2020, 10:00 PM By Myrna M. Velasco
https://business.mb.com.ph/2020/05/30/doe-sets-gcq-protocols-for-energy-companies

As Metro Manila transitions to general community quarantine (GCQ) tomorrow, the Department of Energy (DOE) has issued protocols that its attached agencies and industry players would adhere to in the envisioned “new normal” in the energy sector.

Through an Administrative Order (AO) issued by the department, it prescribed several parameters on how energy companies could gradually reopen or ramp up their operations after the more than two months of disruption because of the coronavirus pandemic.

Energy Secretary Alfonso G. Cusi has directed the agency’s Task Force on Energy Resiliency (TFER) as the implementing body of the “new normal” protocols; primarily ensuring the compliance of all attached agencies and the industry players.

As noted by the energy chief, “it is imperative for the energy industry to observe a strict COVID-19 response protocol,” as he emphasized that “protecting the occupational health and safety of our employees is central to the unimpeded delivery of energy goods and services.”

He added “as back-liners during this pandemic, we must remain healthy to keep providing vital energy to all our front liners.”

The general framework of COVID- 19 health safety protocols for the energy sector delves with: Prevention; detection; isolation; treatment; reintegration and the need for the energy entities to adopt with the ‘new normal’ pace of the industry.

Cusi said simulation planning in the sector went as far as visualizing a scenario wherein there is coronavirus contagion in a power plant – hence, the intended approaches shall be how to detect that and then isolation of the affected employees must be planned; and how they can eventually be treated.

But better than having coronavirus infection, the best advice for the companies and energy agencies is still on prevention of possible infection.

Reintegration of employees shall include those that are of “clean bill of health”; and in cases that COVID infection comes off, the return-to-work of those affected must be handled well to prevent discrimination as what has been happening to former patients – chiefly those who recovered from the plague of the virus infection.

For many energy companies, their managements have been instituting COVID testing before they allow the return of their employees to work, especially when Metro Manila would already be mollified into a “general community quarantine” status. Some firms even extended testing privileges to the families of their employees – especially their human resources who are needed in critical operations of their companies.

Many offices of energy companies had also been reconfigured to ensure social distancing convention in the workplace; some firms are enforcing continuous “work from home” arrangement to minimize exposure of their employees especially those who are classified to be in the “vulnerable” segment; and there is also mandatory wearing of masks; constant temperature checks as well as other health and safety measures being set in place.

SMC income plunges 91% to P1 billion in Q1

Iris Gonzales (The Philippine Star) - May 30, 2020 - 12:00am
https://www.philstar.com/business/2020/05/30/2017395/smc-income-plunges-91-p1-billion-q1

MANILA, Philippines — San Miguel Corp., the country’s biggest conglomerate, saw its first quarter income slump 91 percent to P1 billion due to the adverse business environment brought about by the coronavirus disease 2019 or COVID-19 global pandemic.

COVID-19 grounded most economic activities to a halt, the company said in a presentation to investors.

As a result, SMC’s net sales dropped 15 percent to P214 billion.

“This is an unprecedented crisis we are in, and many countries all over the world continue to struggle to cope. Like most big and small businesses in the Philippines, we are also affected but we maintained our focus on cost reduction and cash preservation amid the COVID-19 crisis,” said SMC president Ramon Ang.
The enhanced community quarantine resulted in a total liquor ban, suspended public transportation and restricted vehicle movements, he said.

Despite the challenging environment, Ang said SMC’s priority is to ensure the continuous and efficient delivery of SMC products and services, strengthen and expand new programs initiated during this crisis, implement plans to safely bring the workforce back, and continue to help the country manage the impact of the pandemic.

“Our economy and day-to-day lives depends on how well we can all work together as one nation to fight COVID-19,” Ang said.

San Miguel Food and Beverage Inc.’s net income dropped 21 percent to P5.8 billion as consolidated revenues fell nine percent to P69 billion.

The San Miguel packaging group’s results also reflected the effects of the enhanced community quarantine with operating income down 31 percent to P570 million.

SMC Global Power Holdings Corp. also posted a 10 percent drop in net income to P3.2 billion.

Petron Corp., the country’s biggest oil refiner, was severely affected by the challenging business environment with transportation and mobility severely restricted throughout the quarantine period.

As a result, Petron incurred a net loss of P4.9 billion compared to the net income of P1.3 billion the previous year.

SMC Infrastructure’s operating toll roads registered a 15 percent volume decline as the lockdown restricted travel movements throughout Luzon. Thus, consolidated revenue fell 27 percent to P4.7 billion, while operating income decreased by 43 percent to P1.8 billion.

ERC hinilingan na magpatupad ng SAP para sa electricity consumers

Arra Perez, Posted at May 30 2020 12:05 AM
https://news.abs-cbn.com/news/05/30/20/erc-hinilingan-na-magpatupad-ng-sap-para-sa-electricity-consumers

MAYNILA - Naghain ng petition sa Energy Regulatory Commission ang grupong Bayan at ilang grupo upang hilinging magpatupad ng social amelioration program para sa electricity consumers ng Meralco na apektado sa enhanced community quarantine sa Luzon.

Isa sa mga panukala ng petitioners ang pag-waive sa electricity bill ng households na may average monthly consumption na 200 kilowatt hour (Kwh) pababa.

Kasama din sa mga panawagan ay ang pag-waive ng singil para sa unang 200 kWh para sa households, na may average monthly consumption na higit sa 200 kWh hanggang 500 kWh.

Ayon kay Bayan Secretary-General Renato Reyes, dahil sa panahon ng lockdown ang saklaw ng kanilang hiling, papatak ito ng hindi bababa sa dalawang buwang halaga ng electricity bills.

Giit ng petitioners, kahit pa inutos na ng ERC ang staggered payment scheme o paunti-unting pagbayad ng electricity bills, mahirap ito lalo na para sa mga nawalan ng trabaho habang may community quarantine.

"Meralco on the average accounts for only 20 percent of the entire bill with the biggest share in the bill going to generation. Meralco rates are also socialized in structure as those consuming 100 kwh and below are given subsidies ranging from 20 to 100 pct. There is also an entire supply chain, we all need to consider as well, when deciding on matters such as what is being suggested because meralco is only one of the many entities included in the energy supply chain," ani Joe Zaldiarraga, spokesperson ng Meralco.

Sinabi ni Zaldiarraga na isa lang ang Meralco sa maraming dapat ikonsidera sa energy supply chain, at dapat itong isaalang-alang sa pagdesisyon sa mga ganitong hiling.

"In so far as assistance during this time of the pandemic, Meralco has also been actively helping the government and its various agencies in the fight against Covid19. Aside from donating PPEs (personal protective equipment), alcohol, and resources to frontline agencies and organizations, Meralco energized in support of the DPWH (Department of Public Works and Highways) several facilities converted to COVID centers, including World Trade Center, Rizal Memorial, and others. Further, in partnership with other corporations, Meralco committed to subsidize the electricity bills of these facilities while they are used as COVID centers," aniya.

Dagdag ni Zaldiarraga, aktibo ang Meralco sa pagtulong sa laban kontra COVID-19 pandemic.

Bukod sa pamamahagi ng PPE at health care items, Meralco rin ang magsa-subsidize ng electricity bills ng mga pasilidad na ginawang COVID faciltiies, tulad ng World Trade Center at Rizal Memorial Sports Complex.

Sinabi ni ERC spokesperson Florisinda Digal, dadaan sa regular na proseso ng evaluation at due process ang hiling ng grupo.

DOE sets GCQ protocols for energy companies

Published May 30, 2020, 10:00 PM By Myrna M. Velasco

https://business.mb.com.ph/2020/05/30/doe-sets-gcq-protocols-for-energy-companies/

As Metro Manila transitions to general community quarantine (GCQ) tomorrow, the Department of Energy (DOE) has issued protocols that its attached agencies and industry players would adhere to in the envisioned “new normal” in the energy sector.

Through an Administrative Order (AO) issued by the department, it prescribed several parameters on how energy companies could gradually reopen or ramp up their operations after the more than two months of disruption because of the coronavirus pandemic.

Energy Secretary Alfonso G. Cusi has directed the agency’s Task Force on Energy Resiliency (TFER) as the implementing body of the “new normal” protocols; primarily ensuring the compliance of all attached agencies and the industry players.

As noted by the energy chief, “it is imperative for the energy industry to observe a strict COVID-19 response protocol,” as he emphasized that “protecting the occupational health and safety of our employees is central to the unimpeded delivery of energy goods and services.”

He added “as back-liners during this pandemic, we must remain healthy to keep providing vital energy to all our front liners.”

The general framework of COVID- 19 health safety protocols for the energy sector delves with: Prevention; detection; isolation; treatment; reintegration and the need for the energy entities to adopt with the ‘new normal’ pace of the industry.

Cusi said simulation planning in the sector went as far as visualizing a scenario wherein there is coronavirus contagion in a power plant – hence, the intended approaches shall be how to detect that and then isolation of the affected employees must be planned; and how they can eventually be treated.

But better than having coronavirus infection, the best advice for the companies and energy agencies is still on prevention of possible infection.

Reintegration of employees shall include those that are of “clean bill of health”; and in cases that COVID infection comes off, the return-to-work of those affected must be handled well to prevent discrimination as what has been happening to former patients – chiefly those who recovered from the plague of the virus infection.

For many energy companies, their managements have been instituting COVID testing before they allow the return of their employees to work, especially when Metro Manila would already be mollified into a “general community quarantine” status. Some firms even extended testing privileges to the families of their employees – especially their human resources who are needed in critical operations of their companies.

Many offices of energy companies had also been reconfigured to ensure social distancing convention in the workplace; some firms are enforcing continuous “work from home” arrangement to minimize exposure of their employees especially those who are classified to be in the “vulnerable” segment; and there is also mandatory wearing of masks; constant temperature checks as well as other health and safety measures being set in place.

Gov’t assures enough fuel supply despite refinery shutdown

posted May 29, 2020 at 09:50 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/324848/gov-t-assures-enough-fuel-supply-despite-refinery-shutdown.html

The Energy Department on Friday assured the public of adequate fuel supply despite the shutdown of two refineries amid the low demand caused by the coronavirus pandemic.

It said the country had more than two months of fuel supply as of May 18, enough to meet local demand.

“Overall, we have sufficient supply, with over two months worth [67.2 days] of available supply, based on their May 18 inventory reports,” the department’s Oil Industry Management Bureau said.

Petron Corp. shut down its 180,000-barrel-per-day refinery in Bataan on May 5 for maintenance activities while Pilipinas Shell Petroleum Corp. implemented a one-month shutdown of its 110,00-barrel-per-day refinery in Batangas on May 24.

“The shutdown of Petron and Shell was due to very low demand. Both refiners, however, could easily resume their operations once demand increases,” the department said.

The agency said demand for petroleum products declined by 20 percent to 30 percent in March and by as much as 60 percent to 70 percent in April during the imposition of the enhanced community quarantine, compared to the February levels.

“We have experienced very low demand for the months of March, April and May, but is expected to gradually increase by June, as quarantine restrictions are eased in an attempt to restart our economy,” the agency said.

Pilipinas Shell said earlier it was shutting down its Batangas refinery for a month starting mid-May as part of its “cash conservation measures”.

The spread of the COVID-19 pandemic led to the implementation of the ECQ in Luzon and selected provinces nationwide which impacted the country’s economic activity.

“In response to the drastic decline in local product demand and the significant deterioration of regional refining margins brought about the COVID-19 pandemic, the company will temporarily shut down its refinery operations for approximately one month starting mid-May 2020,” Pilipinas Shell said.

The Tabangao refinery commenced commercial operations with a nameplate capacity of 30,000 bpd in 1962 and completed its refinery upgrade in 2015.

“The temporary shutdown will help insulate the company from further potential drops in refining margins and will also aid in its cash conservation initiatives. Nonetheless, the Refinery will retain the flexibility to do a start-up immediately should market and demand conditions improve and stabilize,” Pilipinas Shell said.

The company said it was building the flexibility to switch from refinery production to full import of petroleum products, and therefore safeguard the continuous and cost-effective supply of high-quality fuels to the country.

Pilipinas Shell said the North Mindanao Import Facility in Cagayan de Oro City completed in 2016 could pursue product importation if needed.

Both Petron and Pilipinas Shell suffered losses in the first quarter because of low demand and low oil prices.

DOE warned vs buying P2.8-B Malampaya shares

posted May 29, 2020 at 10:40 pm by Manila Standard
https://manilastandard.net/mobile/article/324860

The Bayan Muna group warned Energy Secretary Alfonso Cusi not to go on with plans of purchasing the P2.8 billion shares of tycoon Dennis Uy at the Malampaya consortium, and cautioned the official will be held accountable to the public about the supposed ‘risky investment.’

According to Bayan Muna Chairman Neri Colmenares, buying shares in the Malampaya consortium can be considered a ‘senseless waste of public funds,’ in the wake of the huge financial crisis the country is facing due to the effects of the COVID-19 pandemic.

“Sec Cusi should oppose such buyout considering the government claim that we have a funding crisis. We warn Sec. Cusi not to waste government funds on risky investments in the midst of the pandemic as this will make him accountable for such loss,” Colmenares said in a statement.

A published newspaper article revealed the DOE’s plan to buy 10 of the 45 percent shares of Uy in Malampaya worth P2.8 billion, which Cusi claimed is a huge investment earning for the government.

But Colmenares doubts if investing is really the intension of the government in buying the shares of Uy, who, according to the Bayan official, is just being bailed out by the administration from the number of creditors running after him.

Colmenares even cited the June 30, 2020 ultimatum given by BDO to Uy in resolving the debt equity ratio of his P6 billion loan in 2017 and P300 million loan from 2014. The figures are apart from Uy’s P1.9 billion loan from Landbank, P25 billion loan from the Bank of China, and another one from the Philippine National Bank.

“While government is burying us in debt and discontinuing important projects to realign funds for the COVID response, the DOE is investing public funds in a questionable investment by Dennis Uy, who is reportedly being asked by his creditors to pay off his overdue obligations. If this is intended to help alleviate Uy’s cash strapped predicament, then this is certainly a misuse of public funds for Malacañang’s favored friends” Colmenares said.

Colmenares added that Cusi should inhibit himself in various transactions involving Uy’s companies, citing that in 2017 the Chelsea Logistics Holdings Corp (CLC) of Uy bought the Starlite Ferries Inc. owned by the family of Cusi.

“Considering that Sec. Cusi previously sold Uy his shipping line, then he should inhibit himself from deciding on that transaction as his relationship with Uy is essentially conflicted,” Colmenares said.

Last March 2020, the Udenna Corporation of Uy completed the purchase of 45 percent shares of Chevron Philippines in the Malampaya Natural Gas Project, whose sales worth was not even made in public.

At present, Malampaya is being operated by Shell Philippines Exploration, Philippine National Oil Corporation-Exploration Corporation, and Udenna Corp. Malampaya Philippines of Uy.

Located in Palawan, Malampaya supplies 30 percent of the national electricity demand and likewise supplies electricity to five power plants in Luzon.

Meralco: Waiving electric fees may cause ripple effect to entire power supply chain

By: Gabriel Pabico Lalu - Reporter 11:09 PM May 29, 2020
https://newsinfo.inquirer.net/1283293/meralco-waiving-electric-fees-may-cause-ripple-effect-to-entire-power-supply-chain

MANILA, Philippines – The Manila Electric Company (Meralco) has warned that the structure of the country’s energy supply chain should be considered first before making proposals about waiving electricity bills due to the COVID-19 lockdowns.

Meralco spokesperson Joe Zaldarriaga explained that other players and industries would be affected by proposals made by Bagong Alyansang Makabayan (Bayan), who filed a petition asking for the waiving of bills of consumers affected by the suspension of work.

“Meralco, on the average, accounts for only 20 percent of the entire bill with the biggest share in the bill going to generation,” he said in a statement sent to reporters on Friday.

“There is also an entire supply chain, we all need to consider as well, when deciding on matters such as what is being suggested because Meralco is only one of the many entities included in the energy supply chain,” he added.

Bayan said in their document submitted to the Energy Regulatory Commission (ERC) that the bills of households who use an average of 200 kilowatt-hour (kWh) or less should be waived, as well as the first 200 kWh of those who consume around of 200 kWh to 500 kWh.

According to Zaldarriaga, they are already implementing measures that would help their lifeline customers, like providing 20 to 100 percent subsidies for those using 100 kWh or less per month — while aiding the government in its response towards the COVID-19 pandemic.

“I would also like to emphasize that through our recent Competitive Selection Process plus invoking Force Majeure during the ECQ period, Meralco was able to bring down power prices to their lowest level in more than two years,” he noted.

“Aside from donating PPEs, alcohol, and resources to frontline agencies and organizations, Meralco energized in support of the DPWH several facilities converted to COVID centers, including World Trade Center, Rizal Memorial, and others,” he explained.

Bayan explained that this assistance to the poor and lower middle class families is necessary because it is possible that consumers will find it hard to pay for utilities even if the community quarantines are lifted.

While several utility service companies have expressed their willingness to extend billing periods without cutting their services, customers would still have to settle their entirety of their bills in several tranches.

Add this to the fact that electric bills have seen a spike because of the stay at home policy and the summer season — which immediately translates to higher consumptions — then even the middle class may find it hard to pay the bills.

Just recently, several consumer groups have slammed Meralco for the spike in their May bills. However, Meralco defended the high rates, claiming that these were borne from estimates and corrections from the March and April billing periods, both significantly lower as these were based on estimates for the past three months, which are low temperature periods.

AboitizPower boosts food, sanitation supplies in partner hospitals

May 29, 2020
https://www.sunstar.com.ph/article/1858317

ABOITIZPOWER continues to boost its support to doctors, nurses, and hospital staff on the frontlines to help energize and uplift their spirits for what seems to be an endlessly uncertain path to achieving full Covid-19 recoveries.

Following the turnover of 20,000 surgical masks in partner hospitals around Luzon and Visayas, AboitizPower’s Commercial Operations Business Unit delivered assorted grocery items to nourish hospital staff from Perpetual Help Hospital in Las Piñas and Biñan including Mary Mediatrix Medical Center in Batangas.


On top of these food supplies, around 60 gallons of Isopropyl alcohol were also distributed to help replenish the sanitation supplies needed to protect the front liners.

As businesses slowly work towards rebooting their services, hospitals such as Perpetual Help Biñan have likewise resumed some of their diagnostic and laboratory services to continue catering to the health needs of their community and to ensure an effective infection control system is in place.


These supplies are invaluable in augmenting resources needed to empower front liners and support hospital staff in managing outpatient services and keeping operations afloat.

On behalf of their respective institutions, Dr. Robert Magsino, president of Mary Mediatrix Medical Center, and Philippine National Police (PNP) Chief Gen. Archie Gamboa, representing the PNP General Hospital, both expressed their gratitude for the continued relief initiatives extended to their medical teams.

“The surgical masks donated previously to PNPGH have certainly been helpful to the hospital staff. These new supplies are truly welcome, and will definitely aid the team even more in the exercise of their duties to the patients,” Gamboa said.

In the Visayas, AboitizPower partnered with Pilmico Foods Corporation to distribute bread packs that were sourced from local bakeries near hospitals around Cebu and Bacolod.

Juan Alejandro Aboitiz, AboitizPower’s First Vice President for Commercial Operations, stressed the importance of leveraging synergies within the Aboitiz group to alleviate the economic and social effects of the pandemic.

“We continue to seek ways where AboitizPower can be part of a larger network of service by helping small businesses thrive in an unusual time like this,” Aboitiz said.

Perpetual Succour Hospital, Chong Hua Hospital in Fuente and Mandaue, and Riverside Medical Center in Bacolod each received 1000 packs of bread. Pilmico has since been conducting a bread donation drive, tapping local bakeries to encourage production and sustain livelihood within communities.

As the country continues to face the challenges brought about by this global health crisis, AboitizPower remains committed to prioritizing the needs of its business partners and the communities they serve. (PR)