MVP confirms plan to buy into Shell’s stake in Malampaya

Published October 26, 2020, 4:26 PM by Myrna M. Velasco

https://mb.com.ph/2020/10/26/mvp-confirms-plan-to-buy-into-shells-stake-in-malampaya/

 

Businessman Manuel V. Pangilinan, chairman of PXP Energy Corporation, has confirmed in a briefing with reporters that their company is targeting to buy into the 45-percent stake of Shell Philippines Exploration B. V. (SPEX) in the Malampaya gas field project; and talks on this course already took off.

He said his company already had discussion with JP Morgan, Shell adviser in the equity divestment, on PXP Energy’s targeted merger and acquisition (M&A) deal in the Malampaya venture.

“We’ve been talking to JP Morgan as it is advising Shell on the sale side of their Malampaya,” Pangilinan stressed.

He said the Malampaya facility is seen as a strategic asset by PXP Energy, especially if the company would eventually encounter commercial gas discovery at its Service Contract (SC) 72 – which is an oil and gas exploration venture at the Recto Bank along northwest Palawan basin.

“The plan – assuming we’ll be allowed on who will own Malampaya eventually — is to pipe the gas from SC 72 to Malampaya facilities so they can process the gas and after processing, pipe the gas to Batangas as that’s where most of the gas plants are,” the PXP Energy chairman explained.

The Pangilinan-led firm first looked at the stake unloaded by Chevron, but that was an unsuccessful bid because the buyer of that interest was Udenna Corporation of businessman Dennis Uy.

The longer term goal of the company, according to Pangilinan, is to potentially integrate liquefied natural gas (LNG) in their gas investment portfolio – especially if the SC 72 drilling will yield gas of commercial scale.

“LNG is something that we have to look at for a more balanced portfolio aside from coal, particularly, if we are successful in SC 72 or if we are fortunate to buy the Shell stake in Malampaya, so we should take a look at that business,” Pangilinan said.

At this stage though, he qualified that there is nothing cast in stone yet as far as investments on gas technologies are concerned – as even the extended seismic survey and drilling at SC 72 have yet to secure the final approval of the Department of Energy (DOE) on their submitted revised work program.

“Nothing is definite at this stage, but in the context of the overall gas plan, yes, it’s something we should take a look at,” he stressed.

PXP Energy keen on Shell’s stake in Malampaya project

posted October 26, 2020 at 09:05 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/337863/pxp-energy-keen-on-shell-s-stake-in-malampaya-project.html


PXP Energy Corp., an oil and gas exploration company led by businessman Manuel Pangilinan, plans to bid for the 45-percent stake of Shell Philippines Exploration B.V. in the $4.5-billion Malampaya gas-to-power project in northwest Palawan.

“We are looking at it. We’ve been talking to JP Morgan who has been advising Shell on the sale of their stake in Malampaya,” Pangilinan, chairman of PXP Energy, said in a virtual briefing Monday.

Spex announced last month a plan to sell its 45-percent stake in Service Contract 38, or the Malampaya gas project.

Udenna Corp. and state-run PNOC Exploration Corp. owns 45 percent and 10 percent of SC 38, respectively. Udenna expressed intention to exercise preemptive rights and acquire the stake of Spex.

Meanwhile, Pangilinan said PXP Energy was preparing the work program for SC 72 (Recto Bank) following the government’s decision to lift the moratorium on oil and gas exploration in the West Philippine Sea.

PXP Energy received last week the “resume-to-work” notice from the Department of Energy in relation to SC 72 in northwest Palawan, while PXP’s subsidiary Forum Energy Ltd. also received a notice for its operating interest in SC 75.

“I think in the next few weeks, we will be able to finish our work program which we will submit to DOE for approval,” Pangilinan said.

He, however, expressed concern over the actions of China once PXP Energy proceeded with the work program.

Pangilinan said they might have to look at the work program in accordance with the memorandum of understanding signed by the Philippines and China in November 2018.

“We do have to speak to CNOOC [China National Offshore Corp.] and our government to the Chinese government,” he said.

“The question is what will China do? What will CNOOC do? Can we just send our oil rig without their permission or cooperation? That’s something we don’t know yet,” Pangilinan said.

PXP Energy and CNOOC were in talks for a possible joint exploration over the West Philippine Sea but the parties had not yet signed any agreement.

Pangilinan said PXP Energy would need to drill two exploratory wells in SC 72 which would mean deploying an oil rig to the area.

“We think probably [we] need to do another survey because typically the operator of the oil rig would need an updated survey of the underlying ground, the ocean floor…Then agree with DOE where to put the oil rig and where to put the exploratory wells,” he said.

PXP Energy’s shares soared last week, after the government lifted the moratorium on oil exploration in the West Philippine Sea.

The company reported a net loss of P56.4 million in the first half because of the decline in Galoc oilfield’s production.

Meralco’s core earnings declined 15% to P15.7b in three quarters

posted October 26, 2020 at 08:45 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/337859/meralco-s-core-earnings-declined-15-to-p15-7b-in-three-quarters.html

Power retailer Manila Electric Co. said Monday it posted a core net income of P15.7 billion in the first three quarters, down 15 percent from P18.5 billion in the same period last year, as energy sales declined 7 percent.

The company said consolidated net income reached P11.3 billion in the nine-month period, down from P18.3 billion a year ago, following the recognition of Meralco’s share in the impairment of investment in PacificLight Power Pte Ltd. of P2.7 billion in the first quarter.

“This pandemic has brought about unexpected and radical change in everyday life, giving rise to complex challenges as well as new opportunities. Amidst all the challenges, we can play a meaningful role in the lives of our customers and in helping the country get back on the road to recovery,” Meralco chairman Manuel Pangilinan said.

Pangilinan said Meralco would continue to provide the most reliable and resilient network to ensure that the entire franchise is enabled for the economic upturn.

“Today, we estimate that we need to execute close to P50 billion of capital expenditures for our distribution business and generation investments. We look at this as an opportunity to create jobs, propel business activities and stimulate consumption,” he said.

Pangilinan said Meralco was on the lookout for ways to limit the adverse impact of the pandemic while remaining steadfast in commitment to keeping the lights on to 7 million customers.

“We firmly believe that there is opportunity in every crisis and, are hopeful that we will emerge stronger than ever. We are confident that we will surpass the P21 billion consolidated core net income guidance for 2020 provided in the first half of this year and be able to meet our committed return to shareholders,” said Pangilinan.

Meralco’s gross revenues amounted to P214.2 billion in the nine-month period, 11 percent lower than the same period in 2019 because of the 7-percent decline in energy sales volumes and the effect of lower generation pass-through charges.

Consolidated energy sales volume reached 32,539 gigawatthours, representing a 7-percent decline due to the net effect of the enhanced community quarantine and general community quarantine.

Meralco said that with the gradual easing under GCQ, industrial and commercial sales volumes showed signs of recovery although residential sales volumes continued to account for a larger share of total volumes.

It said that as of Sept. 30, residential volume accounted for 39 percent of the total, up from 31 percent in the same period last year, while the share of commercial declined to 34 percent from 39 percent and industrial to 27 percent from 29 percent.

Meralco attributed the increase in residential sales volume to the continuing work-from-home arrangement and online education for most of the student population. Warmer temperature also increased household consumption.

The company attributed the commercial sales volume recovery to the increasing business activities of traditional sales drivers, which are retail establishments, hotels and restaurants.

Industrial sales volumes were boosted by the semiconductor industry which was allowed to operate at 100-percent capacity with the increased demand for 5G and automotive electronics.

The continuing demand for consumer driven industries, which include food and beverage, chemicals, and packaging contributed to the catch-up energy volume.

Power sector resiliency tested by COVID19

On October 25, 2020 02:00 AM By Komfie Manalo
https://tribune.net.ph/index.php/2020/10/25/power-sector-resiliency-tested-by-covid19/

Forcing the issue of expanding electricity bills payment further erodes stability in the power sector that is also reeling from the economic impact of the global COVID-19 pandemic.

The lockdown measures introduced by the national and local governments have significantly reduced demand for electricity in the industrial and commercial sectors. The global COVID-18 pandemic has had a profound impact on the power sector, leading to a sharp reduction in demand, disruptions to the power supply chain, and heavy financial stress.

Estimates made by the International Energy Agency (IEA) put the reduction in global electricity demand at 2.5 percent in the first quarter of this year, to peak at five percent contraction by yearend.

Domestically, dominant power distributor Manila Electric Company (Meralco) reported a 40 percent drop, representing 4,516 megawatts (MW) in March this year and further to 4,289 MW in April in peak power demand.

Despite the income strain caused by the falling demand and inability to collect from customers, Meralco initially offered a 30-day payment reprieve to its customers for bills due from 1 March to 14 April. The Energy Regulatory Commission (ERC) earlier approved that all consumption during the enhanced community quarantine (ECQ) period — or bills covering March, April and May — should be paid not earlier than June 15. The payment reprieve was further extended up to the end of October by Meralco in response to calls from the government and the public sector with the economy still reeling from the impact of the pandemic.



Balancing industry sustainability
However, at the recent Senate finance subcommittee’s hearing, ERC chairperson Agnes Devanadera disclosed that the commission is drafting a new advisory that would further extend the disconnection policies power distribution utilities (DUs) and electric cooperatives up to 31 December this year.

“We are issuing, your honors, the advisory and even before, we have issued advisories… we have always advocated for the relaxation of the disconnection policies of our distribution utilities,” she said when queried by Senator Risa Hontiveros about the 31 October extension set by Meralco.

Devanadera added, “You’re right, Madame Senator, Meralco announced that their deadline is October 31, but how about our Christmas, how about our New Year.”

When further pressed by the senator if the ERC is mulling on lengthening the deadline to 31 December, Devanadera answered in the affirmative. She stated, “That is what is written in our draft now and we are following the spirit, the letter of the laws.”

There are, however, downsides to the regulator’s response that typifies mendicancy.

First, it discourages consumers to be responsible for their consumptions. There were even muted calls during the strict lockdown to waive the March to May power bills as a form of “subsidy from the government” or as a form of “assistance’ (ayuda) from the power distributor.

Secondly, it does not address the liquidity problems faced by Meralco and the other electric cooperatives across the country because of the drop in demand, which will be further aggravated if cash flow is disrupted too. Indeed, Covid-19 has induced a drop in demand like no other since the spot market was launched in 2006.

P2.69B electric bill savings
From 16 March to 31 August this year, when its franchise areas were placed under ECQ, modified enhanced community quarantine (MECQ) and general community quarantine (GCQ), Meralco waived the Guaranteed Minimum Billing Demand (GMBD), which resulted in P2.69 billion savings for its 87,728 business customers, both small and medium enterprises and large corporations from their electricity bills.

At least 57,939 business customers received a total P513 million GMBD relief when its suspension was extended to industries that were allowed by the Inter-Agency Task Force (IATF) only partial operational capacity, or not allowed to operate.

Another 28,463 Meralco business customers received P272 million in GMBD relief after the IATF Guidelines and the Department of Trade and Industry expanded their Memorandum Circular for MECQ that allows industries with skeleton workforce to 50% operational capacity, or not allowed to operate.

Meralco president and CEO Atty. Ray C. Espinosa said the waiving of the GMBD was aimed at assisting local businesses, from small to large, while also contributing to the general efforts to jumpstart the economy.

By waiving the GMBD, Meralco hopes to keep the economy afloat.



P2.4B force majeure savings
In addition to the GMBD waiver, the largest power distributor promptly invoked force majeure provisions in its power supply agreements since March in its contracts with seven power suppliers with conglomerates, which totaled to about P463 million, or 17.10 centavos per kilowatt hour per customer in the generation charge.

Fortunately, Ayala, San Miguel and Aboitiz consented to this. Invoking force majeure resulted in a total savings of P2.4 billion from lower generation charge for the past six months. This savings was passed on by Meralco to its customers through lower power rates.

According to Espinosa, his company also shouldered the convenience fee for online transactions during the GCQ period. Some P30.4 million in convenience fees covering 647,000 transactions were refunded to customers from 16 March to 15 July.


Pay if you are able
In the same Senate hearing, Devanadera appealed to consumers with the capacity to pay to settle their electricity bills the soonest. This appeal will be included in their upcoming advisory.

“We appeal to those who can pay, who already have the money to pay, maybe their children have sent them money to settle their bills,” she said, adding that power distributing companies, including Meralco, need to raise their collection to pay for their suppliers as well. Otherwise, power generation and distribution could stop.

She even appealed to government agencies to lead the sectors that pay their bills because they have a budget allocation for such expenses, “to help out the industry because the effect is down the line.”

“We are also urging government offices —who have the budget allocation — not to overlook paying their dues,” she said.


Moving forward
As the delivery of goods and services largely depends on the power sector, the industry is the undisputed engine of the global economy, supplying electricity to all other sectors. Yet, even in times of crisis, such as the current COVID-19 pandemic we have been experiencing, the power sector has consistently provided a reliable electricity supply that is critical for sustained medical services and working remotely under lockdown conditions.

The pandemic has caused many dislocations to the power sector. They need our support as well and not mendicant policies.

PSALM fails to get interest on negotiated sale of Malaya plant

posted October 25, 2020 at 07:55 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/337743/psalm-fails-to-get-interest-on-negotiated-sale-of-malaya-plant.html

The negotiated sale of the 650-megawatt Malaya Thermal Power Plant and land failed to receive any participant during the pre-negotiation process on Friday as investor interest could have been affected by the coronavirus pandemic, state-run Power Sector Assets and Liabilities Management Corp. said over the weekend.

“While there were informal inquiries, no one formally submitted [Friday] their letter of intent to join,” PSALM president and Privatization Bids and Awards Committee chairman Irene Garcia said.

Garcia said PSALM, which manages the assets and liabilities of National Power Corp., would report the matter to the board chaired by the Department of Finance.

“The ongoing pandemic and the uncertainty of the times could be affecting the appetite of bidders to invest in Malaya. Whoever will acquire Malaya will necessarily have to spend capex on it. Investors are perhaps much more careful now in taking on new projects that will require substantial costs and capitalization,” the PSALM official said.

PSALM’s PBAC on Oct. 6 asked interested parties to join the negotiated sale process and submit offers for the privatization of MTPP.

PSALM scheduled the submission of letter of interest to the PBAC on Oct. 22.

The pre-negotiation conference was held on Friday while the offer submission deadline was set Nov. 16.

PSALM placed the minimum offer price for the assets in Pililla, Rizal under the negotiated sale process at P2,007,780,000.

PSALM earlier declared a failure the third round of public bidding on Sept. 23 for the privatization of MTPP and its underlying land after none of the pre-qualified bidders submitted a bid.

The minimum bid price for the MTPP in the third round of public bidding was P2,188,400,000.00, or substantially lower than the minimum bid price during the second round of public bidding on Nov. 22, 2019 at P4,481,796,017.00.

Electric co-ops ask virus body to clarify billing grace period

posted October 25, 2020 at 07:50 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/337742/electric-co-ops-ask-virus-body-to-clarify-billing-grace-period.html

Electric cooperatives asked the government to clarify the grace period on bill payment by consumers during the community quarantine period, saying a longer period will have a negative impact on their cashflow and the entire electricity supply chain.

The Philippine Rural Electric Cooperatives Association Inc. and the National Association of General Managers of Electric Cooperatives Inc., in a letter addressed to the Inter-Agency Task Force for the Management of Emerging Infectious Disease dated Oct. 3, sought clarification on the implementation of Section 4 of Republic Act No. 11494 or the “Bayanihan to Recover as One Act.”

The groups said the first part of the provision mandated “institutions providing electric, water, telecommunications and other similar utilities to implement a minimum of 30-day-grace period for the payment of utilities falling due within the period of enhanced community quarantine or Modified Enhanced Community Quarantine without incurring interests, penalties”.

The group said, however, that in the last sentence of the section, “CQ” alone was used instead of ECQ or MECQ. The same wording of CQ was used by the DOE when it issued advisory on Sept. 23.

PHILRECA and NAGMEC said that if CQ be interpreted as any type of community quarantine which would include the least restrictive ones like GCQ and MGCQ, this would have a huge economic impact to the entire electric power supply chain.

“In the case of distribution utilities, specifically the electric cooperatives, the prolonged grace period-and the staggered payment of not less than three months to be implemented after that-will certainly affect our operating capital,” they said.

Electric cooperatives said they could only absorb so much in terms of a decreased or no cashflow that might result from the mandatory grace period or staggered payments.

The first series of grace period and staggered payments was implemented starting April when ECQ was first declared. The installments, in addition to the extension of due dates, were in effect until September.

“While the electric cooperatives themselves will be given reprieve on their payment to generation companies and other suppliers and creditors, they still have to manage their operations, hence, their operational expenses,” the letter read.

PHILRECA and NAGMEC said the ECs’ share in the electricity bill paid by consumers only involved 20 percent of the total, with the rest of the payment remitted to power suppliers, transmission, government taxes and other pass-thru charges.

PHILRECA and NAGMEC said any issuances should be clear and consider and balance the interest and welfare of the entire energy value chain.

San Juan to open solar bike pit stop

posted October 25, 2020 at 07:30 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/337736/san-juan-to-open-solar-bike-pit-stop.html

San Juan City Mayor Francis Zamora, along with Allianz PNB Life Insurance Inc., unveiled over the weekend the design of the country’s first solar-powered bike pit stop that to be constructed in the San Juan City Hall Complex along Pinaglabanan St.

The solar-powered pit stop will feature a bike parking area, a bikers’ resting area and a small footprint bike repair station complete with hanger arms, repair tools and air pump.

The design of the bike pit stop was patterned after the Allianz race car pit stops during Formula 1 races. Safety bollards for bikers will also be installed on major thoroughfares across the city, providing safe lanes for bikers to travel.

“We are thankful for the support of Allianz. It only shows that when we lead the way, we can build private sector confidence in government and support will naturally follow. We have been unyielding and consistent in our bike safety campaign. We hope to encourage more people to use their bikes as a means for traveling by ensuring their safety,” Zamora said in a statement.

Electrifying schools in remote areas

October 24, 2020 12:20 AM By Joe Zaldarriaga
https://tribune.net.ph/index.php/2020/10/24/electrifying-schools-in-remote-areas/

The most important challenge for utility companies in the country is to ensure the continuity of services despite the effects of the pandemic. This isn’t an industry in which people can work from home. They have to operate 24/7 to ensure electricity reaches homes reliably.

Providing efficient and reliable power, especially now that the country has resumed schools using a blended educational approach, is crucial while we are at home as we battle the pandemic.

It is inspiring to know that One Meralco Foundation (OMF), the corporate foundation of electric distributor Manila Electric Company (Meralco), has resumed its electrification of off-grid public schools to help teachers in far-flung communities implement blended learning.

For almost a decade now, OMF has been installing between 1- to 3-kilowatt solar PV systems in public schools located in some of the farthest and hardest-to-reach villages in the country, most of them outside the Meralco franchise area, under its school electrification program.

The foundation aims to provide a means for school children in these remote villages to access digital tools, such as computers and the Internet, vital to developing skills essential in today’s workplace.

As of the end of 2019, OMF has successfully provided electricity access to 245 schools across the country’s three major island groups: Luzon, 106; Visayas, 72, and Mindanao, 67.

OMF’s goal is to constantly keep this momentum. This year, the foundation planned to energize at least 15 more schools, but the health crisis hampered the program’s implementation, especially during the first half of the year.

According to Jeffrey Tarayao, OMF president, schools the foundation had previously energized are in hard-to-access areas even in usual circumstances. The pandemic created a huge challenge and restricted their travel movement to bring their equipment to reach those remote areas.

But even with such challenges, the foundation carried on to achieve its goals. Along with the easing of travel restrictions in many parts of the country, OMF resumed the deployment of its solar PV equipment and engineers to Samar and Masbate provinces in July.

Tarayao said instead of OMF delaying the implementation of its electrification projects, they believed that off-grid schools need electricity access, more so now that the Department of Education (DepEd) has shifted its strategy to blended learning.

This is especially crucial since power is a major component in DepEd’s blended learning educational approach. With students now staying at home to participate in online classes, they need reliable connectivity powered by sufficient power supply. Students studying at home using printed modules and worksheets also need reliable electricity.

Without power supply, teachers won’t be able to access learning materials and print them. Additionally, they won’t be able to participate in online seminars that would prepare them for implementing distance learning. Their students are the ones who will ultimately suffer.

With online classes now on its second week, OMF has completed the electrification of seven island schools in the municipality of Sto. Niño, Samar, among them is Corocawayan Elementary School.
Dennis Cubelo, the school’s principal said, in the past they had difficulty holding classes since electricity is limited on the island only from 4 p.m. and 9 p.m. using a common generator. Most of the schools on the island have no power supply.

Since there is no electricity in the school, which means they cannot use desktop computers and have Internet connectivity, they had to rent a boat to cross to the mainland. Teachers normally use their own money to pay for the boat ride.

With OMF electrifying the island, their school now has 24-hour electricity. Teachers also need not cross and brave the rough waters to perform their teaching duties.

Cubelo is pleased that through OMF’s electrification projects, their teachers are now ready to conduct the blended learning process to their students.

Despite the temporary setback due to the pandemic, OMF remains committed to meeting its target of electrifying at least 15 schools by yearend. In line with this, the foundation is now installing solar power equipment in seven schools in Masbate, and several others in Mindanao in the coming weeks.

On top of these projects, OMF is helping previously energized schools sustain their electrification by providing free training on the proper use and maintenance of their school’s solar PV equipment. This year, these will be conducted online for the safety of participants.

I believe it is important for private utility companies to work closely with local governments to expedite the installation process. This will ensure that proper health and safety protocols implemented in each municipality, such as physical distancing and the wearing of masks, are observed accordingly.

We need more companies like OMF which champions love for country and is willing to take the extra mile to see progress being made despite difficult times and situations.

World Bank: Energy prices to rebound as confidence returns to market

By: Ronnel W. Domingo - 04:15 AM October 24, 2020
https://business.inquirer.net/310306/world-bank-energy-prices-to-rebound-as-confidence-returns-to-market

The global oil market is seeing brighter prospects after half a year of pummeling from the virus, with demand expected to rise slowly to prepandemic levels and on pace with overall economic activity in 2022, according to the World Bank.

The latest edition of the multilateral lender’s biannual Commodity Markets Report shows recovery is progressing gradually even as health considerations continue to hold back travel and tourism.

The bank raised its forecast prices for crude oil to an average $44 per barrel in 2021 from $41 per barrel this year. Last April, the World Bank’s forecast was at $42 per barrel next year from $35 per barrel in 2020.

“Energy prices overall—which also include natural gas and coal—are expected to rebound sizably in 2021, following large declines in 2020, an upward revision from April’s forecast,” the report said.

Prices of crude oil alone jumped by an average of 40 percent in the third quarter compared to the second quarter this year, pushing up overall energy price by one-third in the same comparative periods.

“[But a] resurgence of a second wave of the pandemic that results in more lockdowns and less consumption, and delays in vaccine development and distribution, could lead to lower energy prices than forecast,” the World Bank added.

Already, despite production cuts that jacked up prices of crude oil, the recovery has stalled because of concerns about renewed COVID-19 infections and their impact on oil consumption, the bank observed.

The contagion’s long-drawn effect on the industry is expected such that by end-2021, consumption could be around 5 percent below prepandemic levels.

“China [is] the only country where consumption will be higher [in 2021] than in 2019,” the World Bank said.

In the Philippines, since late January when the impact of the health crisis started to be felt in fuel retail, pump pri­ces of diesel have gone down by a net of P8.65 per liter. For gasoline, the virus has slashed prices by P3.85 per liter.

Mining areas account for most of 93 COVID-19 cases in Benguet

Published October 23, 2020, 12:38 PM by Zaldy Comanda
https://mb.com.ph/2020/10/23/mining-areas-account-for-most-of-93-covid-19-cases-in-benguet/

LA TRINIDAD, Benguet – The highland province of Benguet recorded its highest single-day number of new cases of coronavirus disease (COVID-19) of 93 on Thursday, October 22, mostly coming from mining areas.

The Provincial Health Office (PHO) said, 74 were reported from the mining town of Itogon, 14 in La Trinidad, two each from Tuba and Buguias, and one from Sablan.

Small scale miners were among those affected in Itogon, with 48 coming from in Balatoc, Virac; 23 from Sangilo, Poblacion; and three from Eastern Saddle, Ampucao.

In a Facebook post, Itogon Mayor Victor Palangdan said these areas were mainly mining areas, which he has already placed on lockdown for disinfection contact tracing.

“We highly suspect that transmission happened inside bunkhouses of several mining companies since infected individuals were mostly workers, or miners with their family members living with them,” Palangdan noted.

Palangdan said the lockdown would concentrate on the infected bunkhouses, and will be implemented by their respective barangay officials and mining companies.

The Municipal Health Service Office (MHSO) is expediting contact tracing for isolation and swab testing in these areas.

Benguet Governor Melchor Diclas has called for an emergency meeting on Friday with officials of the Provincial Health Office (PHO) and Department of Health (DOH) in Cordillera to determine how this sudden surge in COVID-19 cases could be contained.

The PHO also reported one fatality of COVID-19 in Buguias town, a 67 year old male, who had electrolyte imbalance and diabetes.

Benguet province now has a total of 714 confirmed cases, with 327 active cases, 378 recoveries, and nine deaths.

AG&P investing $315M in LNG facility in Batangas to supply fuel to Ilijan plant

posted October 23, 2020 at 09:10 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/337600/ag-p-investing-315m-in-lng-facility-in-batangas-to-supply-fuel-to-ilijan-plant.html

Atlantic Gulf & Pacific Company of Manila Inc. plans to put up a liquefied natural gas import facility in Batangas City to supply re-gasified LNG to the 1,200-megawatt Ilijan natural gas power plant, documents filed with the Department of Environment and Natural Resources show Friday.

AG&P said in a report to the DENR the project with an estimated budget of $315 million would be built near the Ilijan power plant, which buys its gas from the Malampaya gas field whose supply contract will expire in June 2022.

“AG&P is targeting to commission this import facility by June 2022 so that the power plant can seamlessly secure supply and continue its operations thereafter,” the company said in the report.

The LNG project will employ an onshore terminal-based regasification facility that is often applied over long-distance transport of LNG by ocean-going vessels.

It said LNG would be regasified into a natural gas at a land based terminal, which would receive it from LNG carriers that transport LNG produced at liquefaction plants, to the Iijan power plant.

“The project will contribute to the national economy, improve the quality of life of the people and meet the projected need for power in the Luzon grid,” AG&P said.

The project will require around 1,500 direct and indirect workers during the construction period. The Personnel will be mostly composed of operators of heavy equipment and construction workers for support facilities and administrative personnel.

AG&P said that if the project would not push through under a ‘no-go’ alternative, the Ilijan power “would either be decommissioned or converted to run on more expensive and higher emission fuels such as condensate and diesel.”

“If the power plant will be decommissioned and replacements will not be built in time for this, the Luzon grid will experience major power outages. In addition, the projected social and economic benefits of the LNG Import Terminal Project will not be realized. These include employment generation, local business growth, increase in government revenue through local and national taxes and permitting fees, host community development through the corporate social responsibility programs, among others,” it said.

SMC Global Power Corp., the independent power producer administrator of the Ilijan power plant, is in advanced stages of executing a binding term sheet on the terminal use agreement with AG&P to provide LNG receiving, storage and regasification services to the Ilijan power plant and the Ilijan expansion.

Based on the TUA, SMC negotiated “priority status” for the Ilijan LNG terminal over all projects of AG&P and as the foundation customers, SMC’s power plants would also be the priority terminal users for the terminal and its capacity.

Coal still dominates pipeline power plants

By October 21, 2020 

https://malaya.com.ph/index.php/news_business/coal-still-dominates-pipeline-power-plants/

The total capacity of committed power plants for construction as of end-August hit 7,722.22 megawatts (MW), 24 percent higher than the 6,239.17 MW capacity of committed power plants last year, data from the Department of Energy (DOE) showed.

Power plants are considered committed when they have achieved power supply agreements, financial close, system impact study and other permits from the Department of Environment and Natural Resources and the Energy Regulatory Commission.

Coal still has the highest share in committed projects at 3,991 MW followed by natural gas fired power plants with 1,750 MW, oil-based power plants with 425.62 MW, solar with 255 MW, biomass with 179.58 MW and wind with 132 MW.

The increase in this year’s committed power plants came from the inclusion of 989 MW battery energy storage facilities, which were absent from last year.

There were no hydro and geothermal power plants committed this year.

Bulk of the committed capacity are located in Luzon from planned coal-fired power plants with a total of 3,436 MW or 45 percent of the entire list.

DOE’s technology-neutral policy encourages power firms to pursue all types of resources with no cap on the maximum allowed capacity for any type of technology.

DOE believes energy security requires diversification beyond renewable energy with conventional sources like coal playing a key role.

As of end-2019, the country had a total installed on-grid capacity of 25,531 MW, 7,399 MW of which are from RE sources comprised of hydro, geothermal, wind, biomass and solar as coal remained the top power source with a share of 10,417 MW. – J. Macapagal

Nuke power plant soon; not in Bataan

October 21, 2020 12:05 AM By Maria Romero
https://tribune.net.ph/index.php/2020/10/21/nuke-power-plant-soon-not-in-bataan/?utm_source=rss&utm_medium=rss&utm_campaign=nuke-power-plant-soon-not-in-bataan

The House of Representatives will help the government pursue the development of a nuclear power plant to ensure energy security in the future.

But reviving the mothballed Bataan Nuclear Power Plant, a vestige of the late Ferdinand Marcos’ strongman’s rule, is highly unlikely, newly-installed House Speaker Lord Allan Velasco on Tuesday told Daily Tribune’s “Straight Talk” program.

Velasco said the promotion of the country’s energy resources, through nuclear power plants, should be pursued but without sacrificing the country’s national security. This will include the safety of residents of the province to host the would-be power plant.

“The residents should be consulted first before we proceed with a plan,” Velasco said.

The Philippines was one of the first Southeast Asian countries to embark on a nuclear power program with the creation of the Philippine Atomic Energy Commission (PAEC) in 1958.

Two decades later after the Commission’s establishment, the country became host to Southeast Asia’s only nuclear power plant in the 1980s — the 621-megawatt Bataan Nuclear Power Plant.

Its construction started in 1976, with a total investment of $2.3 billion by the time it was completed in 1984. However, the plant’s operation was never pursued.

“(I support the nuclear power development) but since most grids are in Bataan… the plant is likely to be built in another site,” Velasco said.

He added that there is an imperative need to revisit the country’s policy on nuclear energy and to determine its feasibility as a long-term option for power generation.



Development in full speed
Meanwhile, Department of Energy (DoE) chief Alfonso G. Cusi said the development of more energy resources is “in full speed” after President Rodrigo Duterte ordered to study the possible adoption of nuclear energy as a power source.

Cusi said the president’s move was a welcome development as it would commence the development and use of nuclear energy in the country in time for the spiking public demand for stable and sufficient electricity.

Not a few experts attest to the safety of nuclear use for power generation.

Cusi had previously noted that the use of nuclear power would benefit the people by enhancing energy supply levels and help shield consumers from traditional power price volatilities in the long run.

“I believe that once we have successfully addressed infrastructure gaps and we have fulfilled all other necessary national requirements, our people and future generations will reap the economic benefits a nuclear energy program brings,” Cusi said.

Executive Order 116, signed by the President on 24 July, provides for the creation of the Nuclear Energy Program Inter-Agency Committee (NEP-IAC) to be chaired by the DoE, with the Department of Science and Technology as vice chair.

The inter-agency body is mandated to primarily conduct a study for the adoption of a National Position on a Nuclear Energy Program (NEP).

The government has long been exploring nuclear power as a viable energy source in line with the global push to reduce fossil fuel use due to its hazardous carbon emissions.

In a previous interview, Cusi pointed out that the public’s perception of nuclear energy is also changing as reflected in the nationwide survey that the DoE commissioned last year.

However, the government official previously declared that he wanted to ensure that adequate security measures are in place before considering a nuclear energy program for the country.

Engaging in nuclear technology calls for the assistance and mentorship of countries that already have knowledge of nuclear energy such as China, Russia, Korea and France.

Under the Philippine Energy Plan 2016-2030, the government is pushing towards a “responsive and dynamic” energy mix to support the growing industrialization and expected increase in energy demand.

NGCP turns over Valenzuela housing project

 

Catherine Talavera (The Philippine Star) - October 21, 2020 - 12:00am

https://www.philstar.com/business/2020/10/21/2051041/ngcp-turns-over-valenzuela-housing-project

 

MANILA, Philippines — The National Grid Corporation of the Philippines (NGCP) has turned over five buildings of a housing project for informal settler families previously living within the transmission right-of-way corridor in Valenzuela City.

NCGP said it formally turned over the first batch of low-rise dwellings in Disiplina Village, Lingunan, Valenzuela City to the city government of Valenzuela on Oct. 15, together with Gawad Kalinga.

“As the power grid operator, NGCP worked with the City of Valenzuela to relocate residents previously living within the transmission right-of-way corridor to prevent any accidents from happening due to their proximity to the high voltage power lines,” NGCP said.

NGCP added that the project is also in line with the enactment of Republic Act 11361 or the Anti Obstruction of Power Lines Act, which aims to ensure the uninterrupted flow of power by prohibiting construction of structures and conducting any activity within or along the power line corridor.

In February last year, NGCP, the Valenzuela City LGU, and Gawad Kalinga broke ground on the 2.5-hectare property of the city government for the establishment of the in-city relocation site.

The entire housing project comprises 22 three-story low-rise buildings with 792 units.

The P282 million project is scheduled for completion by 2021.

NGCP said the five buildings were completed in October and formally turned over in a simple ceremony at the Disiplina Village attended by representatives from NGCP led by vice president and head of Central Projects Office Mark Joseph Andeo, Gawad Kalinga led by executive director Daniel Bercasio, and LGU officials headed by Valenzuela City Mayor Rex Gatchalian.

Rep. Wes Gatchalian, and Sec. Eduardo del Rosario of the Department of Human Settlements and Urban Development were also present.

“NGCP and the City of Valenzuela, together with Gawad Kalinga, worked hand in hand to give residents of the city a safer living environment, away from the dangers posed by living near or under high voltage transmission lines,” NGCP said.

“Disiplina Village is the product of collaborative efforts to serve the community in order to protect them and give them a safer place to live in,” NGCP said.

Under prevailing laws, the abatement of nuisances, such as buildings and structures underneath transmission lines, is primarily the obligation of the local government.

“NGCP extended its help and its resources to Valenzuela City to expedite the relocation. We felt that if our help was needed to make things happen and ensure the safety of the residents, we had to find a way to get this done,” the company said.

The five newly constructed buildings, with a total of 180 units, will be given to residents of Barangay Mapulang Lupa and Ugong previously residing along the transmission line corridor of NGCP’s San Jose-Quezon 230kV Line.

NGCP is a Filipino-led, privately owned company in charge of operating, maintaining, and developing the country’s power grid.

Cusi sees edge for Udenna in purchase of Shell’s Malampaya stake

 

Published October 20, 2020, 2:08 PM  by Myrna M. Velasco

https://mb.com.ph/2020/10/20/cusi-sees-edge-for-udenna-in-purchase-of-shells-malampaya-stake/

 

Anchoring it on the ‘right to match’ provision of the joint operating agreement (JOA) under Service Contract (SC) 38, Energy Secretary Alfonso G. Cusi indicated that Udenna Corporation of businessman Dennis Uy may likely have an edge in acquiring the 45-percent stake being unloaded by Shell Philippines Exploration B.V. (SPEX) in the Malampaya gas field asset.

That kind of ‘advantage’, according to the energy chief, is in parallel shared by state-run Philippine National Oil Company-Exploration Corporation (PNOC-EC), being the other member in the SC 38 consortium for the gas production facility.

“The other members of the consortium have that ‘right to match’ the proposal, so that is a bit of an advantage, not only for Udenna but also for PNOC-EC,” Cusi stressed.

The DOE secretary said Shell is currently is in discussion with several prospective buyers of its Malampaya interest, a divestment process that the Royal Dutch Shell subsidiary had publicly made known last month.

Following that announcement, Udenna sounded off plans to partner with PNOC-EC in the targeted purchase of SPEX’s interest in the gas field, noting that it will leverage on the gained expertise of current employees/workforce in the facility on its bid to take over the field’s operations.

Udenna currently has 45-percent shareholdings in the Malampaya asset, a majority interest that it acquired from American firm Chevron in a transaction that was finalized in March this year.

Given the pronouncement of Udenna to buy into Shell’s interest, Senate Committee on Energy Chairman Sherwin T. Gatchalian noted the divestment of that stake has to be assured that it is done prudently, because the acquiring-entity will also take over the field’s operations and will be making tough decisions relating to its operational and commercial viability.

“This is not a plain and simple business transaction. It affects all of us because of energy security issues. We want to be assured that we will not run out of fuel supply in the immediate future,” the lawmaker said.

The Malampaya field is supplying fuel to five power plants of more than 3,200-megawatt aggregate capacity; and they account for sizeable generated capacity being fed to the Luzon grid.

“We’re looking at the larger picture which is the energy security of the country. So we have to make sure that whoever takes over that portion of Shell should have the technical capability,” Gatchalian emphasized.

He added the buyer of Shell’s interest “should be able to demonstrate that they can operate this rig competently with technical expertise.”

And given earlier studies that Malampaya may still have residual gas beyond the contract life of SC 38, he indicated the future operator of the field “should be able to demonstrate that they can explore and develop that area.”

The solon said “one of the issues facing Malampaya includes whether or not it should be extended or the government should opt to manage and operate it.”