December 23, 2020 | 12:02 am
https://www.bworldonline.com/doe-respects-petrons-decision-to-close-bataan-refinery-cusi/
THE Department of Energy (DoE) respects Petron Corp.’s move to shut down its oil refinery in Limay, Bataan as it is a business decision on the firm’s part, the agency’s top official said on Monday.
“That closure is a business decision by Petron. That, we respect because if they see that there is a better way to commercially operate, gagawin nila iyon (they will do that),” DoE Secretary Alfonso G. Cusi said in a press briefing.
His statement comes after Petron announced earlier this month that it would shutter its 180,000-barrel-per-day crude oil refinery, the country’s remaining refining facility after a rival closed its own.
Last week, Ramon S. Ang-led Petron said in a regulatory filing that it would be suspending operations at its plant in Bataan starting mid-January next year to minimize losses “in view of weak margins.”
Mr. Cusi said he supported Petron’s proposal to turn its refinery into a special economic zone under the Philippine Economic Zone Authority (PEZA).
“We want a PEZA zone to flourish in the country actively. As long as it [has a] positive impact to all, we want to promote that… It’s their business decision. They’ll present their proposal to us. [We’ll] just look at it. I don’t see any problem,” he said.
Mr. Cusi added that the closure of the country’s sole refinery would not affect oil supply.
“Ang gagawin din nila (What they will do is to) import the finished product and use their terminal as their storage for clean product instead of… crude oil. So, Petron is looking into also keeping their market share. That will not affect the supply of oil,” he said.
The firm’s move to close its Bataan refinery comes months after its rival Pilipinas Shell Petroleum Corp. announced the permanent shutdown of its 110,000 barrel-per-day refinery in Tabangao, Batangas, due to worsened margins and a drop in fuel demand amid the pandemic.
In the third quarter, Petron posted a P1.63-billion consolidated net income, which was largely driven by retailing margins. The firm said that despite the “modest” recovery, its refining segment continued to record losses because of thin margins.
Wednesday, December 23, 2020
Petron’s Bataan refinery eyed as freeport zone
(The Philippine Star) - December 23, 2020 - 12:00am
https://www.philstar.com/business/2020/12/23/2065661/petrons-bataan-refinery-eyed-freeport-zone
MANILA, Philippines — The Department of Energy (DOE) is backing a proposal to include the refinery of Petron Corp. under the Freeport Area of Bataan.
Energy Secretary Alfonso Cusi said the DOE would not oppose the proposal to reclassify Petron’s Bataan refinery under an economic zone.
“It’s their business decision. They can present it to us, we’ll just look at it, I don’t see any problem,” he said.
The reclassification could avert the shutdown of Petron’s refinery in Bataan.
“As long as it is making a positive impact on our country, we want to promote that,” Cusi said.
Petron earlier announced that its refinery in Limay, Bataan would be on economic plant shutdown beginning the second half of January 2021.
The country’s largest oil refiner and marketer previously cited the lack of a level playing field between importers and refiners in terms of taxes.
Ramon Ang, president and CEO of Petron, stressed that the heavy taxes paid by refiners as compared to oil importers make refining a difficult business to be in.
He said refiners pay value-added tax (VAT) and excise tax, among others, when they import crude oil into the country and then pay another round of taxes after processing and selling their products to the local market.
With the fluctuations in global oil prices, Petron has also incurred significant losses.
As of end-October, Petron reported a net loss of P12.6 billion compared to a net income of P3.6 billion in 2019. Consolidated revenues also declined by 43 percent to P216.4 billion.
However, Ang said the closure of refineries is not unique to the country as the global refinery industry has been a tough business, especially with the COVID-19 pandemic.
Cusi said the DOE respects the decision of Petron to close down its refinery, and that this would not affect the country’s oil supply.
“If they see a better way to commercially operate, they should do it,” he said.
Petron’s Bataan refinery is the only remaining refinery in operation in the country.
Caltex Philippines closed its Batangas refinery in 2003, while Pilipinas Shell Petroleum Corp. permanently shut down its refinery operations in Tabangao, Batangas and transformed the facility into a full import terminal last August.
https://www.philstar.com/business/2020/12/23/2065661/petrons-bataan-refinery-eyed-freeport-zone
MANILA, Philippines — The Department of Energy (DOE) is backing a proposal to include the refinery of Petron Corp. under the Freeport Area of Bataan.
Energy Secretary Alfonso Cusi said the DOE would not oppose the proposal to reclassify Petron’s Bataan refinery under an economic zone.
“It’s their business decision. They can present it to us, we’ll just look at it, I don’t see any problem,” he said.
The reclassification could avert the shutdown of Petron’s refinery in Bataan.
“As long as it is making a positive impact on our country, we want to promote that,” Cusi said.
Petron earlier announced that its refinery in Limay, Bataan would be on economic plant shutdown beginning the second half of January 2021.
The country’s largest oil refiner and marketer previously cited the lack of a level playing field between importers and refiners in terms of taxes.
Ramon Ang, president and CEO of Petron, stressed that the heavy taxes paid by refiners as compared to oil importers make refining a difficult business to be in.
He said refiners pay value-added tax (VAT) and excise tax, among others, when they import crude oil into the country and then pay another round of taxes after processing and selling their products to the local market.
With the fluctuations in global oil prices, Petron has also incurred significant losses.
As of end-October, Petron reported a net loss of P12.6 billion compared to a net income of P3.6 billion in 2019. Consolidated revenues also declined by 43 percent to P216.4 billion.
However, Ang said the closure of refineries is not unique to the country as the global refinery industry has been a tough business, especially with the COVID-19 pandemic.
Cusi said the DOE respects the decision of Petron to close down its refinery, and that this would not affect the country’s oil supply.
“If they see a better way to commercially operate, they should do it,” he said.
Petron’s Bataan refinery is the only remaining refinery in operation in the country.
Caltex Philippines closed its Batangas refinery in 2003, while Pilipinas Shell Petroleum Corp. permanently shut down its refinery operations in Tabangao, Batangas and transformed the facility into a full import terminal last August.
Phinma sells stake in solar firm to steel products unit UGC
December 23, 2020 | 12:03 am
https://www.bworldonline.com/phinma-sells-stake-in-solar-firm-to-steel-products-unit-ugc/
LISTED company Phinma Corp. has sold its stake in a solar energy unit for around P218.35 million to a subsidiary as it rationalizes the ownership structure of its construction materials business.
In a regulatory filing on Tuesday, it said its steel products subsidiary Union Galvasteel Corp. (UGC) bought nearly 25 million of the shares of Phinma Solar Energy Corp. at P8.83 apiece. The shares were paid in full on Monday.
Phinma Corp. owns more than 97.84% of UGC.
“The purchase price is equivalent to Phinma’s cost of investment in Phinma Solar,” Phinma Corp. said.
The sale will consolidate UGC’s full ownership of Phinma Solar, which is jointly owned by Phinma Corp. and the steel products unit.
“Phinma Solar can add value in terms of product positioning and merging technology to complement the products and services offered by UGC,” Phinma Corp. said.
In a separate disclosure on Tuesday, Phinma Corp. said that its board of directors approved the subscription of 24.73 million shares in UGC.
“The additional investment will increase UGC’s equity in support of its investment in Phinma Solar,” the firm said.
Phinma Corp. is a holding company with interests in the education, steel products, housing, and business process outsourcing sectors. Its subsidiaries include UGC, Phinma Education Holdings, Inc., and Pamantasan ng Araullo, Inc.
Its shares on Tuesday improved 0.92% to finish at P9.89 apiece. — Angelica Y. Yang
https://www.bworldonline.com/phinma-sells-stake-in-solar-firm-to-steel-products-unit-ugc/
LISTED company Phinma Corp. has sold its stake in a solar energy unit for around P218.35 million to a subsidiary as it rationalizes the ownership structure of its construction materials business.
In a regulatory filing on Tuesday, it said its steel products subsidiary Union Galvasteel Corp. (UGC) bought nearly 25 million of the shares of Phinma Solar Energy Corp. at P8.83 apiece. The shares were paid in full on Monday.
Phinma Corp. owns more than 97.84% of UGC.
“The purchase price is equivalent to Phinma’s cost of investment in Phinma Solar,” Phinma Corp. said.
The sale will consolidate UGC’s full ownership of Phinma Solar, which is jointly owned by Phinma Corp. and the steel products unit.
“Phinma Solar can add value in terms of product positioning and merging technology to complement the products and services offered by UGC,” Phinma Corp. said.
In a separate disclosure on Tuesday, Phinma Corp. said that its board of directors approved the subscription of 24.73 million shares in UGC.
“The additional investment will increase UGC’s equity in support of its investment in Phinma Solar,” the firm said.
Phinma Corp. is a holding company with interests in the education, steel products, housing, and business process outsourcing sectors. Its subsidiaries include UGC, Phinma Education Holdings, Inc., and Pamantasan ng Araullo, Inc.
Its shares on Tuesday improved 0.92% to finish at P9.89 apiece. — Angelica Y. Yang
AC Energy slates February offer period for SRO
Published December 23, 2020, 7:30 AM by Myrna M. Velasco
https://mb.com.ph/2020/12/23/ac-energy-slates-february-offer-period-for-sro/
Ayala-led AC Energy Philippines Inc. (ACEN) has slated February next year as the offer period for its stock rights offering (SRO), in which 2,267,580, 434 common shares will be issued.
The stock listing has been priced at P2.37 per share, based on approval that it had secured for its SRO from the Securities and Exchange Commission; and then the Philippine Stock Exchange.
The shares to be issued shall be as of record date January 13, 2021; and the offer period will kick off on February 1 and will end by February 5.
The Ayala firm previously emphasized that the stock rights offering will comprise of two rounds and will be followed by a domestic institutional offer.
It qualified that the first round – which comprises of the 2,267,580,434 shares – will be offered on “pre-emptive rights basis to eligible shareholders of the company”; as reckoned on the specified record date of January 13, 2021.
Those who can participate are shareholders who are inside the Philippines; and even those who are outside the Philippines as long as it is legal for them to take part in the rights offer.
The second round of the SRO shall consist of “the unsubscribed rights shares from the first round of the rights offer, which shall be offered to those shareholders that exercised their rights in the prior round and had simultaneously signified their intention to subscribe to any unsubscribed rights shares by tendering payment of the total offer price of all rights shares subscribed to – including all rights shares in excess of their entitlements.”
For the domestic institutional offer, ACEN had tapped BPI Capital Corporation and China Bank Capital Corporation as joint lead underwriters; and they are tasked “to firmly underwrite the rights offer” – primarily for shares that had not been taken up in the second round rights offer or those that had not been subscribed to by eligible shareholders or not paid by eligible shareholders.
The Ayala energy firm is currently advancing several projects that will substantially build up its power generation portfolio – most specifically for renewable energy leaning technologies.
ACEN is not just aggressively expanding in the Philippines, but it is also pursuing energy ventures in various Asian countries – primarily in Australia, India, Vietnam and other Southeast Asian markets – gearing up for its 5,000 megawatts attributable capacity target by 2025.
In the domestic energy market, the Ayala firm’s array of projects include solar installations in Pampanga, Zambales and Laguna; a wind farm venture in Ilocos Norte; and a thermal power facility in Rizal.
https://mb.com.ph/2020/12/23/ac-energy-slates-february-offer-period-for-sro/
Ayala-led AC Energy Philippines Inc. (ACEN) has slated February next year as the offer period for its stock rights offering (SRO), in which 2,267,580, 434 common shares will be issued.
The stock listing has been priced at P2.37 per share, based on approval that it had secured for its SRO from the Securities and Exchange Commission; and then the Philippine Stock Exchange.
The shares to be issued shall be as of record date January 13, 2021; and the offer period will kick off on February 1 and will end by February 5.
The Ayala firm previously emphasized that the stock rights offering will comprise of two rounds and will be followed by a domestic institutional offer.
It qualified that the first round – which comprises of the 2,267,580,434 shares – will be offered on “pre-emptive rights basis to eligible shareholders of the company”; as reckoned on the specified record date of January 13, 2021.
Those who can participate are shareholders who are inside the Philippines; and even those who are outside the Philippines as long as it is legal for them to take part in the rights offer.
The second round of the SRO shall consist of “the unsubscribed rights shares from the first round of the rights offer, which shall be offered to those shareholders that exercised their rights in the prior round and had simultaneously signified their intention to subscribe to any unsubscribed rights shares by tendering payment of the total offer price of all rights shares subscribed to – including all rights shares in excess of their entitlements.”
For the domestic institutional offer, ACEN had tapped BPI Capital Corporation and China Bank Capital Corporation as joint lead underwriters; and they are tasked “to firmly underwrite the rights offer” – primarily for shares that had not been taken up in the second round rights offer or those that had not been subscribed to by eligible shareholders or not paid by eligible shareholders.
The Ayala energy firm is currently advancing several projects that will substantially build up its power generation portfolio – most specifically for renewable energy leaning technologies.
ACEN is not just aggressively expanding in the Philippines, but it is also pursuing energy ventures in various Asian countries – primarily in Australia, India, Vietnam and other Southeast Asian markets – gearing up for its 5,000 megawatts attributable capacity target by 2025.
In the domestic energy market, the Ayala firm’s array of projects include solar installations in Pampanga, Zambales and Laguna; a wind farm venture in Ilocos Norte; and a thermal power facility in Rizal.
3 foreign firms shortlisted for First Gen project
By Jordeene B. LagareDecember 23, 2020
https://www.manilatimes.net/2020/12/23/business/companies/3-foreign-firms-shortlisted-for-first-gen-project/815967/
FIRST Gen Corp. is getting closer to choosing the entity that will build its floating storage regasification unit (FSRU), which forms part of its planned liquefied natural gas (LNG) project in Batangas.
In a disclosure, the Lopez-led company said its subsidiary FGEN LNG Corp. has selected three preferred tenderers to proceed with the next stage of its binding tender process for the charter of an FSRU in its interim offshore LNG terminal.
These are BW Gas Ltd., Dynagas Ltd., and Hoegh LNG Asia Pte Ltd.
BW Gas is a subsidiary of Bermuda-based BW Group that is involved in the global market of transportation and floating regasification services of LNG, including construction, ownership, and operation of FSRUs, and other LNG carriers (LNGCs).
Dynagas Ltd., headquartered in Athens, Greece, is an LNG maritime transportation company that manages a fleet of LNG carriers (15 on the water + 2 under construction) on long-term charters with major energy companies and two FSRU currently under construction.
Meanwhile, Hoegh LNG Asia Pte Ltd. is a unit of Hoegh LNG Ltd., which is itself a wholly-owned subsidiary of Hoegh LNG Holdings. It is listed on the Oslo Stock Exchange.
An FSRU is a LNGC capable of storing LNG and has an onboard regasification plant capable of returning LNG into a gaseous state and then supplying it directly into the gas network.
A typical FSRU has a storage capacity of between 125,000 cubic meters (m3) and 170,000 m3. According to the International Gas Union World LNG Report – 2020 Edition, approximately 6 percent of the global fleet of 541 LNGC vessels operate as FSRUs as of end-2019.
First Gen had said the planned LNG facility would accelerate its ability to introduce LNG to the Philippines as early as the third quarter of 2022 to serve the natural gas requirements of existing and future gas-fired power plants of third parties and FGEN LNG affiliates.
The LNG terminal, to rise at First Gen Clean Energy Complex in Batangas City, was declared an energy project of national significance in August last year by the Energy Investment Coordinating Council through the Department of Energy.
First Gen shares went up by 90 centavos or 3.19 percent to close at P29.10 each on Monday.
https://www.manilatimes.net/2020/12/23/business/companies/3-foreign-firms-shortlisted-for-first-gen-project/815967/
FIRST Gen Corp. is getting closer to choosing the entity that will build its floating storage regasification unit (FSRU), which forms part of its planned liquefied natural gas (LNG) project in Batangas.
In a disclosure, the Lopez-led company said its subsidiary FGEN LNG Corp. has selected three preferred tenderers to proceed with the next stage of its binding tender process for the charter of an FSRU in its interim offshore LNG terminal.
These are BW Gas Ltd., Dynagas Ltd., and Hoegh LNG Asia Pte Ltd.
BW Gas is a subsidiary of Bermuda-based BW Group that is involved in the global market of transportation and floating regasification services of LNG, including construction, ownership, and operation of FSRUs, and other LNG carriers (LNGCs).
Dynagas Ltd., headquartered in Athens, Greece, is an LNG maritime transportation company that manages a fleet of LNG carriers (15 on the water + 2 under construction) on long-term charters with major energy companies and two FSRU currently under construction.
Meanwhile, Hoegh LNG Asia Pte Ltd. is a unit of Hoegh LNG Ltd., which is itself a wholly-owned subsidiary of Hoegh LNG Holdings. It is listed on the Oslo Stock Exchange.
An FSRU is a LNGC capable of storing LNG and has an onboard regasification plant capable of returning LNG into a gaseous state and then supplying it directly into the gas network.
A typical FSRU has a storage capacity of between 125,000 cubic meters (m3) and 170,000 m3. According to the International Gas Union World LNG Report – 2020 Edition, approximately 6 percent of the global fleet of 541 LNGC vessels operate as FSRUs as of end-2019.
First Gen had said the planned LNG facility would accelerate its ability to introduce LNG to the Philippines as early as the third quarter of 2022 to serve the natural gas requirements of existing and future gas-fired power plants of third parties and FGEN LNG affiliates.
The LNG terminal, to rise at First Gen Clean Energy Complex in Batangas City, was declared an energy project of national significance in August last year by the Energy Investment Coordinating Council through the Department of Energy.
First Gen shares went up by 90 centavos or 3.19 percent to close at P29.10 each on Monday.
Meralco applauded for stretched grace
December 23, 2020 02:30 AM By Chito Lozada
https://tribune.net.ph/index.php/2020/12/23/meralco-applauded-for-stretched-grace/?utm_source=rss&utm_medium=rss&utm_campaign=meralco-applauded-for-stretched-grace
Manila Electric Co. (Meralco) acquired a supporter at the House of Representatives in House Committee on Energy chair Pampanga Rep. Juan Miguel Arroyo for heeding the request of Speaker Lord Allan Velasco to prolong the grace period to electricity users in settling their unpaid bills without fear of disconnection until January 31 next year.
“This is the best Christmas gift Meralco can give its millions of customers as we continue to fight the effects of this pandemic, both health and economic-wise,” Arroyo said.
Arroyo made the statement after Velasco bared the Philippines’ biggest power distributor had granted his request to extend their no-disconnection policy until the end of January 2021.
Lifeline customers
Meralco’s no-disconnection policy for unpaid bills was supposed to end on 31 December before Velasco stepped in and made his request. The extended grace period was confirmed by Meralco president Ray Espinosa.
The no-disconnection policy, though only targeted Meralco consumers with monthly consumptions of 200 kilowatt per hour and below, will benefit more than 3 million electric consumers, comprising about 47 percent of the power giant’s customer Arroyo also appealed to the electric cooperatives (EC) and distribution utilities (DU) all over the country to accord the same gesture to their customers.
Coops should follow suit
“As Chairman of the House Committee on Energy, I would request the same for electric cooperatives nationwide as well as other private distribution utilities to benefit the rest of our countrymen,” Arroyo noted.
At the same time, the Pampanga congressman bared his committee would soon be calling a hearing to help the electric cooperatives and DU find ways in assisting their clienteles.
“The House Committee on Energy intends to call for a hearing soonest with EC and private DU so that we could determine how these EC and DU could extend assistance to their clients in light of the current pandemic,” Arroyo said as he noted that the EC could not afford to grant the same privilege to their customers as that of Meralco as their thrust is to provide service and not to make profit.
“We all need to sacrifice a little to help our country,” he added.
PH nuclear plan up for President’s approval
By Jordeene B. Lagare December 23, 2020
https://www.manilatimes.net/2020/12/23/business/business-top/ph-nuclear-plan-up-for-presidents-approval/815994/
THE proposal to include nuclear energy as one of the country’s energy sources is now awaiting the approval of President Rodrigo Duterte, according to a government official.
Energy Secretary Alfonso Cusi said the Department of Energy (DoE) has already submitted the nuclear power plan to the President last Friday.
The submission is a requirement stated in Executive Order (EO) 116, signed by Duterte in July, which mandates a government study to determine and develop the national position for a nuclear power program in the country.
For this purpose, the Nuclear Energy Program Inter-Agency Committee (NEP-IAC) was created.
The NEP-IAC shall also formulate a national strategy to include a timeline in the preparation of a NEP, as well as measures to address infrastructure issues and make appropriate recommendations.
It will also review the existing legal framework, study the viability of nuclear energy, and recommend the necessary steps in the utilization of nuclear energy, as well as existing facilities such as the Bataan Nuclear Power Plant.
“The government shall conduct a study for the adoption of a National Position on the Nuclear Energy Program in accordance with the pertinent IAEA (International Atomic Energy Agency) guidelines and relevant laws, rules, and regulations,” said Duterte said in his directive.
Duterte stated in the EO that the state adhered to international standards on the safety, security and safeguards on peaceful development of nuclear energy.
Furthermore, the country has to satisfy the infrastructure requirements prescribed by the International Atomic Energy Agency for the development of a national infrastructure for nuclear power.
Cusi is hoping the government will decide “favorably” in the nuclear energy program crafted by the agency.
“We hope that it will be included in our energy mix. We submitted it, we did the work and, of course, [we have a] positive expectation,” he said.
https://www.manilatimes.net/2020/12/23/business/business-top/ph-nuclear-plan-up-for-presidents-approval/815994/
THE proposal to include nuclear energy as one of the country’s energy sources is now awaiting the approval of President Rodrigo Duterte, according to a government official.
Energy Secretary Alfonso Cusi said the Department of Energy (DoE) has already submitted the nuclear power plan to the President last Friday.
The submission is a requirement stated in Executive Order (EO) 116, signed by Duterte in July, which mandates a government study to determine and develop the national position for a nuclear power program in the country.
For this purpose, the Nuclear Energy Program Inter-Agency Committee (NEP-IAC) was created.
The NEP-IAC shall also formulate a national strategy to include a timeline in the preparation of a NEP, as well as measures to address infrastructure issues and make appropriate recommendations.
It will also review the existing legal framework, study the viability of nuclear energy, and recommend the necessary steps in the utilization of nuclear energy, as well as existing facilities such as the Bataan Nuclear Power Plant.
“The government shall conduct a study for the adoption of a National Position on the Nuclear Energy Program in accordance with the pertinent IAEA (International Atomic Energy Agency) guidelines and relevant laws, rules, and regulations,” said Duterte said in his directive.
Duterte stated in the EO that the state adhered to international standards on the safety, security and safeguards on peaceful development of nuclear energy.
Furthermore, the country has to satisfy the infrastructure requirements prescribed by the International Atomic Energy Agency for the development of a national infrastructure for nuclear power.
Cusi is hoping the government will decide “favorably” in the nuclear energy program crafted by the agency.
“We hope that it will be included in our energy mix. We submitted it, we did the work and, of course, [we have a] positive expectation,” he said.
DOE to award new geo, hydro contracts by May 2021
Danessa Rivera (The Philippine Star) - December 22, 2020 - 12:00am
https://www.philstar.com/business/2020/12/22/2065410/doe-award-new-geo-hydro-contracts-may-2021
MANILA, Philippines — The Department of Energy (DOE) is eyeing to award new geothermal and hydropower contracts under the third round of the open and competitive selection process (OCSP 3) by May 2021.
In the bidding process, the DOE has allowed foreign contractors to bid for geothermal prospects, as exploring and developing these areas have a high risk and is capital-intensive.
In a virtual briefing yesterday, DOE-Renewable Energy Management Bureau (REMB) director Mylene Capongcol said the OCSP 3 guidelines would be published by Dec. 30.
“We expect by April that we can identify the winning bidders. Hopefully by May, the contracts would be signed by the secretary,” she said.
Under the third round, the DOE identified five geothermal areas with a combined capacity of 87 megawatts (MW) and 17 hydropower areas with a total of 65.4 MW capacity.
“In the OCSP, parties are bidding in a predetermined area. They will be evaluated based on technical and financial, and will be recommended for approval,” Capongcol said.
Of the five geothermal projects, foreign investors can bid for Area 1-Daklan Geothermal Project with potential capacity of 27 MW, Area 3-Puting Lupa Geothermal Project with 17 MW and Area 5-Mt. Labo Geothermal Project with 30 MW.
The DOE said these areas are open to foreign owned corporations under financial or technical assistance agreement (FTAA) applications since these are large-scale exploration, development and utilization of geothermal resources with an initial investment of $50 million.
Capongcol said no foreign investor has expressed interest in the geothermal projects. “We haven’t received any interest from foreign investors yet, but we received letters of intent from local companies,” she said.
In the circular launching OCSP 3, the DOE said the “exploration, development and utilization of these PDAs for RE resources would significantly contribute to the energy supply requirements of the Philippines.”
The OCSP will be declared a failure if no renewable energy application was received within the period allotted or if none passed the legal, technical and financial requirements. The DOE will then open the PDAs for direct applications.
Some of the areas being offered under the latest OCSP were failed bids in the previous offer.
In February 2015, the DOE offered 21 renewable energy sites under OCSP 2, four of which are geothermal sites with aggregate potential capacity of up to 134 MW and 17 are hydropower sites with capacity of up to 733.4 MW.
The agency only received eight offers for two geothermal concession areas and 31 proposals for 14 hydropower deals in May the same year.
The DOE has also declared a bidding failure for three hydropower projects and two other geothermal sites, which had no bid proposals.
Under the service contracts, the winning bidders will have two years for pre-development for less than 50 MW and five years for at least 50 MW.
It also covers a 25-year development stage, which can be renewed for another 25 years.
https://www.philstar.com/business/2020/12/22/2065410/doe-award-new-geo-hydro-contracts-may-2021
MANILA, Philippines — The Department of Energy (DOE) is eyeing to award new geothermal and hydropower contracts under the third round of the open and competitive selection process (OCSP 3) by May 2021.
In the bidding process, the DOE has allowed foreign contractors to bid for geothermal prospects, as exploring and developing these areas have a high risk and is capital-intensive.
In a virtual briefing yesterday, DOE-Renewable Energy Management Bureau (REMB) director Mylene Capongcol said the OCSP 3 guidelines would be published by Dec. 30.
“We expect by April that we can identify the winning bidders. Hopefully by May, the contracts would be signed by the secretary,” she said.
Under the third round, the DOE identified five geothermal areas with a combined capacity of 87 megawatts (MW) and 17 hydropower areas with a total of 65.4 MW capacity.
“In the OCSP, parties are bidding in a predetermined area. They will be evaluated based on technical and financial, and will be recommended for approval,” Capongcol said.
Of the five geothermal projects, foreign investors can bid for Area 1-Daklan Geothermal Project with potential capacity of 27 MW, Area 3-Puting Lupa Geothermal Project with 17 MW and Area 5-Mt. Labo Geothermal Project with 30 MW.
The DOE said these areas are open to foreign owned corporations under financial or technical assistance agreement (FTAA) applications since these are large-scale exploration, development and utilization of geothermal resources with an initial investment of $50 million.
Capongcol said no foreign investor has expressed interest in the geothermal projects. “We haven’t received any interest from foreign investors yet, but we received letters of intent from local companies,” she said.
In the circular launching OCSP 3, the DOE said the “exploration, development and utilization of these PDAs for RE resources would significantly contribute to the energy supply requirements of the Philippines.”
The OCSP will be declared a failure if no renewable energy application was received within the period allotted or if none passed the legal, technical and financial requirements. The DOE will then open the PDAs for direct applications.
Some of the areas being offered under the latest OCSP were failed bids in the previous offer.
In February 2015, the DOE offered 21 renewable energy sites under OCSP 2, four of which are geothermal sites with aggregate potential capacity of up to 134 MW and 17 are hydropower sites with capacity of up to 733.4 MW.
The agency only received eight offers for two geothermal concession areas and 31 proposals for 14 hydropower deals in May the same year.
The DOE has also declared a bidding failure for three hydropower projects and two other geothermal sites, which had no bid proposals.
Under the service contracts, the winning bidders will have two years for pre-development for less than 50 MW and five years for at least 50 MW.
It also covers a 25-year development stage, which can be renewed for another 25 years.
No violation seen in Chevron-Udenna deal in Malampaya
Published December 22, 2020, 3:38 PM by Myrna M. Velasco
https://mb.com.ph/2020/12/22/no-violation-seen-in-chevron-udenna-deal-in-malampaya/
Amid controversies stirred up by the transaction, the Department of Energy (DOE) indicated that it had not seen ‘violation’ in the sale and purchase agreement (SPA) sealed by American firm Chevron Corporation and Udenna Corporation in the 45-percent stake of Malampaya that was unloaded by the former in March this year.
“In our initial evaluation, we have not seen any that would make the transaction void,” Energy Secretary Alfonso G. Cusi told reporters.
It was in a Senate Committee on Energy hearing last month where the energy officials sounded off that the Chevron-Udenna deal is a “voidable contract’ — in the event that the DOE will discover any lapses committed by the parties in their transaction for the Malampaya project.
Cusi qualified though that the energy department has yet to finalize all evaluations of the documents submitted by Udenna and Chevron to the DOE; and they are scrutinizing if these are all in keeping with the provisions of Service Contract (SC) 38 of the Malampaya field as well as with the government policies.
“Our presumption here is on the concern of regularity in the transaction of the two parties. We are making sure that everything is compliant,” Cusi stressed.
Asked if the department has any definitive timeline on when it will be firming up its approval on the Chevron-Udenna deal, Cusi noted that the matter is being handled by the Energy Resource Development Bureau, “but we’re rushing it.”
Energy officials previously told the Senate, that while the payment of US$565 million for the unloaded Chevron shares had already been consummated, the transaction itself is still ‘not completed’ without the final approval of the DOE.
“For Udenna and Chevron, it’s a transaction between two parties. We’re just making sure that the interest of the republic is not compromised — the interest of the government; and the service to the people is not compromised,” Cusi stressed.
He said the department will need to guarantee that the processes are in conformity with all laws and rules, given the massive cash that the Udenna firm of businessman Dennis Uy had coughed up for that merger and acquisition (M&A) deal.
“The parties cannot afford not to be compliant; and their detailed work on the transaction were not just done recklessly,” the energy chief opined.
The sale of Chevron’s stake in the Malampaya field is just the first exit of one of its major shareholders; since even the gas field’s operator – Shell Philippines Exploration B.V. – has already announced its divestment plan for its interest in the asset.
The service contract of the gas field is due to expire in 2024, hence, it is a major challenge for the Philippine government to discover its next petroleum field that could turn in commercial scale discovery with the magnitude of Malampaya.
https://mb.com.ph/2020/12/22/no-violation-seen-in-chevron-udenna-deal-in-malampaya/
Amid controversies stirred up by the transaction, the Department of Energy (DOE) indicated that it had not seen ‘violation’ in the sale and purchase agreement (SPA) sealed by American firm Chevron Corporation and Udenna Corporation in the 45-percent stake of Malampaya that was unloaded by the former in March this year.
“In our initial evaluation, we have not seen any that would make the transaction void,” Energy Secretary Alfonso G. Cusi told reporters.
It was in a Senate Committee on Energy hearing last month where the energy officials sounded off that the Chevron-Udenna deal is a “voidable contract’ — in the event that the DOE will discover any lapses committed by the parties in their transaction for the Malampaya project.
Cusi qualified though that the energy department has yet to finalize all evaluations of the documents submitted by Udenna and Chevron to the DOE; and they are scrutinizing if these are all in keeping with the provisions of Service Contract (SC) 38 of the Malampaya field as well as with the government policies.
“Our presumption here is on the concern of regularity in the transaction of the two parties. We are making sure that everything is compliant,” Cusi stressed.
Asked if the department has any definitive timeline on when it will be firming up its approval on the Chevron-Udenna deal, Cusi noted that the matter is being handled by the Energy Resource Development Bureau, “but we’re rushing it.”
Energy officials previously told the Senate, that while the payment of US$565 million for the unloaded Chevron shares had already been consummated, the transaction itself is still ‘not completed’ without the final approval of the DOE.
“For Udenna and Chevron, it’s a transaction between two parties. We’re just making sure that the interest of the republic is not compromised — the interest of the government; and the service to the people is not compromised,” Cusi stressed.
He said the department will need to guarantee that the processes are in conformity with all laws and rules, given the massive cash that the Udenna firm of businessman Dennis Uy had coughed up for that merger and acquisition (M&A) deal.
“The parties cannot afford not to be compliant; and their detailed work on the transaction were not just done recklessly,” the energy chief opined.
The sale of Chevron’s stake in the Malampaya field is just the first exit of one of its major shareholders; since even the gas field’s operator – Shell Philippines Exploration B.V. – has already announced its divestment plan for its interest in the asset.
The service contract of the gas field is due to expire in 2024, hence, it is a major challenge for the Philippine government to discover its next petroleum field that could turn in commercial scale discovery with the magnitude of Malampaya.
No foreign firm takers of PH geothermal blocks yet
Published December 22, 2020, 7:00 AM by Myrna M. Velasco
https://mb.com.ph/2020/12/22/no-foreign-firm-takers-of-ph-geothermal-blocks-yet/https://mb.com.ph/2020/12/22/no-foreign-firm-takers-of-ph-geothermal-blocks-yet/
Despite the perceived low capitalization of US$50 million dangled to foreign investors for integrated geothermal resource exploration and power plant development in the country, the Department of Energy (DOE) disclosed that there are no takers yet of the blocks being offered by the government.
“We don’t know of any foreign company yet. There were companies that submitted letters of intent – these are two local companies,” DOE Director Mylene Capongcol said.
She noted that at least three geothermal blocks are being tendered to interested foreign investors: these are prospects in Daclan, Benguet; Puting Lupa in Laguna; and Mt. Labo in Camarines Norte.
“Five of the geothermal projects are pre-determined areas –three (3) of that will be viable for 100-percent foreign or under FTAA (financial or technical assistance agreement) arrangement; and we expect that by April, we would be able to identify already the winners,” she said.
From the evaluation of the DOE’s Renewable Energy Management Bureau (REMB), the bids that will pass the criteria and tendering process of the DOE will have to be endorsed to the Office of the Secretary for final approval.
The DOE announced in November that it is opening the country’s geothermal sector to full foreign participation so investments in the sector would flourish – and the initial venue for the interested international firms to firm up their interest will be via the 3rd Open and Competitive Selection Process (OCSP) for both geothermal and hydro projects.
The legal basis of the DOE in allowing 100-percent foreign stake in geothermal project is the prescription of the Renewable Energy Act defining geothermal as a mineral resource.
Meanwhile, aside from the pre-determined areas (PDAs) that had already been opened by the department to an auction process, Energy Secretary Alfonso G. Cusi indicated that interested parties can also nominate their preferred blocks or areas – and this will be subject to evaluation as well as a ‘bid challenge’ phase as prescribed by DOE guidelines for geothermal ventures.
“If they (investors) would like to nominate an area, they can do so and that will be processed,” the energy chief stated.
For the OCSP-3 auction process, Capongcol noted that the first publication was on December 15; while the second publication is slated by December 30 this year.
“In OCSP, they ’re bidding in a particular pre-determined area, so they will be evaluated based on technical and financial (criteria) – and then, we will recommend that for approval,” the energy official explained.
https://mb.com.ph/2020/12/22/no-foreign-firm-takers-of-ph-geothermal-blocks-yet/https://mb.com.ph/2020/12/22/no-foreign-firm-takers-of-ph-geothermal-blocks-yet/
Despite the perceived low capitalization of US$50 million dangled to foreign investors for integrated geothermal resource exploration and power plant development in the country, the Department of Energy (DOE) disclosed that there are no takers yet of the blocks being offered by the government.
“We don’t know of any foreign company yet. There were companies that submitted letters of intent – these are two local companies,” DOE Director Mylene Capongcol said.
She noted that at least three geothermal blocks are being tendered to interested foreign investors: these are prospects in Daclan, Benguet; Puting Lupa in Laguna; and Mt. Labo in Camarines Norte.
“Five of the geothermal projects are pre-determined areas –three (3) of that will be viable for 100-percent foreign or under FTAA (financial or technical assistance agreement) arrangement; and we expect that by April, we would be able to identify already the winners,” she said.
From the evaluation of the DOE’s Renewable Energy Management Bureau (REMB), the bids that will pass the criteria and tendering process of the DOE will have to be endorsed to the Office of the Secretary for final approval.
The DOE announced in November that it is opening the country’s geothermal sector to full foreign participation so investments in the sector would flourish – and the initial venue for the interested international firms to firm up their interest will be via the 3rd Open and Competitive Selection Process (OCSP) for both geothermal and hydro projects.
The legal basis of the DOE in allowing 100-percent foreign stake in geothermal project is the prescription of the Renewable Energy Act defining geothermal as a mineral resource.
Meanwhile, aside from the pre-determined areas (PDAs) that had already been opened by the department to an auction process, Energy Secretary Alfonso G. Cusi indicated that interested parties can also nominate their preferred blocks or areas – and this will be subject to evaluation as well as a ‘bid challenge’ phase as prescribed by DOE guidelines for geothermal ventures.
“If they (investors) would like to nominate an area, they can do so and that will be processed,” the energy chief stated.
For the OCSP-3 auction process, Capongcol noted that the first publication was on December 15; while the second publication is slated by December 30 this year.
“In OCSP, they ’re bidding in a particular pre-determined area, so they will be evaluated based on technical and financial (criteria) – and then, we will recommend that for approval,” the energy official explained.
Tuesday, December 22, 2020
First Gen selects global contractors for LNG terminal
Danessa Rivera (The Philippine Star) - December 22, 2020 - 12:00am
https://www.philstar.com/business/2020/12/22/2065417/first-gen-selects-global-contractors-lng-terminal
MANILA, Philippines — Lopez-led First Gen Corp. has selected three preferred global contractors to build its offshore liquefied natural gas (LNG) terminal.
In a disclosure to the Philippine Stock Exchange yesterday, First Gen said its wholly owned unit FGEN LNG Corp. has completed the initial evaluation for the charter of the floating storage and regasification unit (FSRU).
The subsidiary has selected three preferred bidders to continue to the next stage of its binding tender process, namely BW Gas Limited, Dynagas Ltd., and Hoegh LNG Asia Pte Ltd.
BW Gas Limited is a wholly owned subsidiary of the BW Group, and is involved in the global market of transportation and floating regasification services of LNG, including construction, ownership, and operation of FSRUs and other LNG carriers.
Based in Athens, Greece, Dynagas Ltd. is a LNG maritime transportation company, which manages a fleet of LNG carriers (15 on the water and two under construction) on long term charters.
Hoegh LNG Asia Pte. Ltd. is a wholly owned subsidiary of Hoegh LNG Limited, which is itself a wholly owned subsidiary of Oslo stock exchange listed Hoegh LNG Holdings. Hoegh LNG Holdings, which specializes in the global market of transportation and floating regasification services of LNG.
The Lopez firm said the FSRU that FGEN LNG is seeking to charter would provide LNG storage and regasification services in respect of FGEN LNG’s Interim Offshore LNG Terminal that it is developing at the First Gen Clean Energy Complex in Batangas City.
The Interim Offshore LNG Terminal consists of construction works necessary to modify the existing liquid fuel jetty that will enable it to become multiple-use, and build an adjunct onshore gas receiving facility to receive and deliver gas to end-users.
The project will allow FGEN LNG to accelerate its ability to introduce LNG to the Philippines as early as the third quarter of 2022, to serve the natural gas requirements of existing and future gas-fired power plants of third parties and its affiliates.
A FSRU is a LNG carrier (LNGC) capable of storing LNG and which has an onboard regasification plant capable of returning LNG into a gaseous state and then supplying it directly into the gas network.
A typical FSRU has a storage capacity of between 125,000 cubic meters` and 170,000 cubic meters.
According to the International Gas Union World LNG Report-2020 Edition, approximately six percent of the global fleet of 541 LNGC vessels operate as FSRUs as of end-2019.
https://www.philstar.com/business/2020/12/22/2065417/first-gen-selects-global-contractors-lng-terminal
MANILA, Philippines — Lopez-led First Gen Corp. has selected three preferred global contractors to build its offshore liquefied natural gas (LNG) terminal.
In a disclosure to the Philippine Stock Exchange yesterday, First Gen said its wholly owned unit FGEN LNG Corp. has completed the initial evaluation for the charter of the floating storage and regasification unit (FSRU).
The subsidiary has selected three preferred bidders to continue to the next stage of its binding tender process, namely BW Gas Limited, Dynagas Ltd., and Hoegh LNG Asia Pte Ltd.
BW Gas Limited is a wholly owned subsidiary of the BW Group, and is involved in the global market of transportation and floating regasification services of LNG, including construction, ownership, and operation of FSRUs and other LNG carriers.
Based in Athens, Greece, Dynagas Ltd. is a LNG maritime transportation company, which manages a fleet of LNG carriers (15 on the water and two under construction) on long term charters.
Hoegh LNG Asia Pte. Ltd. is a wholly owned subsidiary of Hoegh LNG Limited, which is itself a wholly owned subsidiary of Oslo stock exchange listed Hoegh LNG Holdings. Hoegh LNG Holdings, which specializes in the global market of transportation and floating regasification services of LNG.
The Lopez firm said the FSRU that FGEN LNG is seeking to charter would provide LNG storage and regasification services in respect of FGEN LNG’s Interim Offshore LNG Terminal that it is developing at the First Gen Clean Energy Complex in Batangas City.
The Interim Offshore LNG Terminal consists of construction works necessary to modify the existing liquid fuel jetty that will enable it to become multiple-use, and build an adjunct onshore gas receiving facility to receive and deliver gas to end-users.
The project will allow FGEN LNG to accelerate its ability to introduce LNG to the Philippines as early as the third quarter of 2022, to serve the natural gas requirements of existing and future gas-fired power plants of third parties and its affiliates.
A FSRU is a LNG carrier (LNGC) capable of storing LNG and which has an onboard regasification plant capable of returning LNG into a gaseous state and then supplying it directly into the gas network.
A typical FSRU has a storage capacity of between 125,000 cubic meters` and 170,000 cubic meters.
According to the International Gas Union World LNG Report-2020 Edition, approximately six percent of the global fleet of 541 LNGC vessels operate as FSRUs as of end-2019.
DOE to award new geo, hydro contracts by May 2021
Danessa Rivera (The Philippine Star) - December 22, 2020 - 12:00am
https://www.philstar.com/business/2020/12/22/2065410/doe-award-new-geo-hydro-contracts-may-2021
MANILA, Philippines — The Department of Energy (DOE) is eyeing to award new geothermal and hydropower contracts under the third round of the open and competitive selection process (OCSP 3) by May 2021.
In the bidding process, the DOE has allowed foreign contractors to bid for geothermal prospects, as exploring and developing these areas have a high risk and is capital-intensive.
In a virtual briefing yesterday, DOE-Renewable Energy Management Bureau (REMB) director Mylene Capongcol said the OCSP 3 guidelines would be published by Dec. 30.
“We expect by April that we can identify the winning bidders. Hopefully by May, the contracts would be signed by the secretary,” she said.
Under the third round, the DOE identified five geothermal areas with a combined capacity of 87 megawatts (MW) and 17 hydropower areas with a total of 65.4 MW capacity.
“In the OCSP, parties are bidding in a predetermined area. They will be evaluated based on technical and financial, and will be recommended for approval,” Capongcol said.
Of the five geothermal projects, foreign investors can bid for Area 1-Daklan Geothermal Project with potential capacity of 27 MW, Area 3-Puting Lupa Geothermal Project with 17 MW and Area 5-Mt. Labo Geothermal Project with 30 MW.
The DOE said these areas are open to foreign owned corporations under financial or technical assistance agreement (FTAA) applications since these are large-scale exploration, development and utilization of geothermal resources with an initial investment of $50 million.
Capongcol said no foreign investor has expressed interest in the geothermal projects. “We haven’t received any interest from foreign investors yet, but we received letters of intent from local companies,” she said.
In the circular launching OCSP 3, the DOE said the “exploration, development and utilization of these PDAs for RE resources would significantly contribute to the energy supply requirements of the Philippines.”
The OCSP will be declared a failure if no renewable energy application was received within the period allotted or if none passed the legal, technical and financial requirements. The DOE will then open the PDAs for direct applications.
Some of the areas being offered under the latest OCSP were failed bids in the previous offer.
In February 2015, the DOE offered 21 renewable energy sites under OCSP 2, four of which are geothermal sites with aggregate potential capacity of up to 134 MW and 17 are hydropower sites with capacity of up to 733.4 MW.
The agency only received eight offers for two geothermal concession areas and 31 proposals for 14 hydropower deals in May the same year.
The DOE has also declared a bidding failure for three hydropower projects and two other geothermal sites, which had no bid proposals.
Under the service contracts, the winning bidders will have two years for pre-development for less than 50 MW and five years for at least 50 MW.
It also covers a 25-year development stage, which can be renewed for another 25 years.
https://www.philstar.com/business/2020/12/22/2065410/doe-award-new-geo-hydro-contracts-may-2021
MANILA, Philippines — The Department of Energy (DOE) is eyeing to award new geothermal and hydropower contracts under the third round of the open and competitive selection process (OCSP 3) by May 2021.
In the bidding process, the DOE has allowed foreign contractors to bid for geothermal prospects, as exploring and developing these areas have a high risk and is capital-intensive.
In a virtual briefing yesterday, DOE-Renewable Energy Management Bureau (REMB) director Mylene Capongcol said the OCSP 3 guidelines would be published by Dec. 30.
“We expect by April that we can identify the winning bidders. Hopefully by May, the contracts would be signed by the secretary,” she said.
Under the third round, the DOE identified five geothermal areas with a combined capacity of 87 megawatts (MW) and 17 hydropower areas with a total of 65.4 MW capacity.
“In the OCSP, parties are bidding in a predetermined area. They will be evaluated based on technical and financial, and will be recommended for approval,” Capongcol said.
Of the five geothermal projects, foreign investors can bid for Area 1-Daklan Geothermal Project with potential capacity of 27 MW, Area 3-Puting Lupa Geothermal Project with 17 MW and Area 5-Mt. Labo Geothermal Project with 30 MW.
The DOE said these areas are open to foreign owned corporations under financial or technical assistance agreement (FTAA) applications since these are large-scale exploration, development and utilization of geothermal resources with an initial investment of $50 million.
Capongcol said no foreign investor has expressed interest in the geothermal projects. “We haven’t received any interest from foreign investors yet, but we received letters of intent from local companies,” she said.
In the circular launching OCSP 3, the DOE said the “exploration, development and utilization of these PDAs for RE resources would significantly contribute to the energy supply requirements of the Philippines.”
The OCSP will be declared a failure if no renewable energy application was received within the period allotted or if none passed the legal, technical and financial requirements. The DOE will then open the PDAs for direct applications.
Some of the areas being offered under the latest OCSP were failed bids in the previous offer.
In February 2015, the DOE offered 21 renewable energy sites under OCSP 2, four of which are geothermal sites with aggregate potential capacity of up to 134 MW and 17 are hydropower sites with capacity of up to 733.4 MW.
The agency only received eight offers for two geothermal concession areas and 31 proposals for 14 hydropower deals in May the same year.
The DOE has also declared a bidding failure for three hydropower projects and two other geothermal sites, which had no bid proposals.
Under the service contracts, the winning bidders will have two years for pre-development for less than 50 MW and five years for at least 50 MW.
It also covers a 25-year development stage, which can be renewed for another 25 years.
M2DC buys stake in Basic Energy
By VG Cabuag December 22, 2020
https://businessmirror.com.ph/2020/12/22/m2dc-buys-stake-in-basic-energy/
MAP 2000 Development Corp. (M2DC) is acquiring a majority stake in Basic Energy Corp., the energy company led by the De Venecia Group.
In its disclosure, a memorandum of agreement was signed between the two companies in which M2DC will buy at least 67 percent of Basic Energy, subject to several conditions.
M2DC will acquire some 9.82 billion shares of Basic Energy that it will issue out of the increase in authorized capital stock to P5 billion from the previous P2.5 billion.
“[The] said capital increase was approved by the Company’s stockholders at the annual stockholders’ meeting held last October 23, 2020,” the company said in a disclosure.
The said move may trigger the Philippine Stock Exchange’s tender offer rule, which requires the buyer to purchase the rest of company.
“If any acquisition that would result in ownership of over 50 percent of the total outstanding equity securities of a public company, the acquirer shall be required to make a tender offer under this rule for all the outstanding equity securities to all remaining stockholders of the said company at a price supported by a fairness opinion provided by an independent financial advisor or equivalent third party. The acquirer in such a tender offer shall be required to accept all securities tendered,” according to the rule.
“M2DC is a Philippine registered company engaged in real estate acquisition, development, and management, and as well as in investing in real properties and acquiring shares of stocks of viable corporations to exercise rights of a shareholder,” Basic Energy said in its disclosure.
The company declined to give other details of the deal.
The company was awarded by the Department of Energy a total of five service contracts for the exploration and development of geothermal energy in Mabini, Batangas; Mariveles, Bataan; East Mankayan, Benguet; Iriga, Camarines Sur; and West Bulusan, Sorsogon. The company was also previously awarded by the DOE four hydro-power service contracts all located in Negros Occidental, but it has withdrawn from these service contracts to focus on its drilling operations in Mabini, Batangas. This service contract was, however, terminated by the DOE in June last year.
The company owns Basic Diversified Industrial Holdings Inc., an investment holding company; iBasic Inc., an information technology management company and service integrator; Basic Biofuels Corp., a biofuels developer; Basic Renewables, which is into the development of renewable energy; Basic Geothermal Energy Corp., which is into geothermal energy development; and Grandway Group Limited, a Hong Kong-based unit in charge of equity investments abroad. It also owns 72.58 percent of Southwest Resources Inc., an oil exploration company.
https://businessmirror.com.ph/2020/12/22/m2dc-buys-stake-in-basic-energy/
MAP 2000 Development Corp. (M2DC) is acquiring a majority stake in Basic Energy Corp., the energy company led by the De Venecia Group.
In its disclosure, a memorandum of agreement was signed between the two companies in which M2DC will buy at least 67 percent of Basic Energy, subject to several conditions.
M2DC will acquire some 9.82 billion shares of Basic Energy that it will issue out of the increase in authorized capital stock to P5 billion from the previous P2.5 billion.
“[The] said capital increase was approved by the Company’s stockholders at the annual stockholders’ meeting held last October 23, 2020,” the company said in a disclosure.
The said move may trigger the Philippine Stock Exchange’s tender offer rule, which requires the buyer to purchase the rest of company.
“If any acquisition that would result in ownership of over 50 percent of the total outstanding equity securities of a public company, the acquirer shall be required to make a tender offer under this rule for all the outstanding equity securities to all remaining stockholders of the said company at a price supported by a fairness opinion provided by an independent financial advisor or equivalent third party. The acquirer in such a tender offer shall be required to accept all securities tendered,” according to the rule.
“M2DC is a Philippine registered company engaged in real estate acquisition, development, and management, and as well as in investing in real properties and acquiring shares of stocks of viable corporations to exercise rights of a shareholder,” Basic Energy said in its disclosure.
The company declined to give other details of the deal.
The company was awarded by the Department of Energy a total of five service contracts for the exploration and development of geothermal energy in Mabini, Batangas; Mariveles, Bataan; East Mankayan, Benguet; Iriga, Camarines Sur; and West Bulusan, Sorsogon. The company was also previously awarded by the DOE four hydro-power service contracts all located in Negros Occidental, but it has withdrawn from these service contracts to focus on its drilling operations in Mabini, Batangas. This service contract was, however, terminated by the DOE in June last year.
The company owns Basic Diversified Industrial Holdings Inc., an investment holding company; iBasic Inc., an information technology management company and service integrator; Basic Biofuels Corp., a biofuels developer; Basic Renewables, which is into the development of renewable energy; Basic Geothermal Energy Corp., which is into geothermal energy development; and Grandway Group Limited, a Hong Kong-based unit in charge of equity investments abroad. It also owns 72.58 percent of Southwest Resources Inc., an oil exploration company.
MVP Group donates resources across the country
By BusinessMirror December 22, 2020
https://businessmirror.com.ph/2020/12/22/mvp-group-donates-resources-across-the-country/
As the Covid-19 pandemic and various typhoons batter the country in 2020, many Filipinos have been left with very little, making the coming holidays difficult to celebrate. Steadfast in its commitment to heed the call of those in need, the MVP Group is embarking on a country-wide donation drive called “Tuloy Pa Rin Ang Pasko,” where 22 companies and foundations under the leadership of Manuel V. Pangilinan are uniting to pool funds for Noche Buena packs for families to enjoy.
The Noche Buena packs include meals and rice sacks which will depend on each company’s contribution. Some of the companies will also donate other essentials such as printers, pocket wifi, and toys for the children among others. Part of the donation will also include a fund to support various sectors and advocacies amid the new normal. These include teachers, farmers, public hospitals, as well as communities affected by recent typhoons and the Taal Volcano eruption of January.
“Filipino traditions are usually the strongest and warmest at this time of the year. Sadly, this pandemic has not only radically changed our work and our lives, but it has also dampened the festive mood of Christmas. With Tuloy Pa Rin Ang Pasko, our group aims to ignite even the smallest spark of hope in our countrymen and let them know that they can count on us,” said Group Chairman Manuel V Pangilinan.
The MVP Group aims to reach out to communities from Luzon, Visayas and Mindanao. These include Aeata communities in Sitio Villa Maria in Porac, Pampanga; blind masseurs in Sta. Mesa, Manila; indigent patients and hospital personnel from the East Avenue Medical Center; jeepney and tricycle drivers from General Santos City, Manila and select towns in Batangas; students and low-income households from Cagbalete Island, Quezon and Dona Remedios Trinidad in Bulacan which Meralco energized, persons with disability community, vegetable vendors from Sitio Magnolia in Quezon City; Sining Ipo Indigent Dumagats; Dumagat farmers in Marikina Watershed; and farmers in North and Central Luzon.
The Group also provided support to various sectors, including Caritas Manila; Radio Veritas; affected communities of Taal eruption and recent typhoons; Jolohanon Women’s Association, a Tausug fishing village in Jolo; Pangasinan farmers that were supported by Smart through its #BuyLocal campaign and sustainability fund; lastly, Metro Pacific Investments Foundation delivered 200 Noche Buena packages to boatmen and their families whose livelihoods have been destroyed during the onslaught of successive typhoons in Mabini, Batangas.
Other areas across the country include Mabini, Batangas; Siargao; Alaminos City; Puerto Galera; Albay; Cagayan; Camarines Sur; Camarines Norte; Isabela; Batangas; Catanduanes; Tuguegarao City; Surigao City; Aloguinsan and Boljoon, Cebu; Zamboanga City; Iligan City; and Quezon Province.
“I commend all our employees who are stepping up to give some of what they have for this endeavor. This bayanihan spirit is what will help us rise and overcome our challenges and make us appreciate the true essence of Christmas,” Pangilinan said.
The Tuloy Pa Rin Ang Pasko initiative also introduces an anthem composed exclusively for the campaign that aims to uplift Filipinos’ spirits this season.
https://businessmirror.com.ph/2020/12/22/mvp-group-donates-resources-across-the-country/
As the Covid-19 pandemic and various typhoons batter the country in 2020, many Filipinos have been left with very little, making the coming holidays difficult to celebrate. Steadfast in its commitment to heed the call of those in need, the MVP Group is embarking on a country-wide donation drive called “Tuloy Pa Rin Ang Pasko,” where 22 companies and foundations under the leadership of Manuel V. Pangilinan are uniting to pool funds for Noche Buena packs for families to enjoy.
The Noche Buena packs include meals and rice sacks which will depend on each company’s contribution. Some of the companies will also donate other essentials such as printers, pocket wifi, and toys for the children among others. Part of the donation will also include a fund to support various sectors and advocacies amid the new normal. These include teachers, farmers, public hospitals, as well as communities affected by recent typhoons and the Taal Volcano eruption of January.
“Filipino traditions are usually the strongest and warmest at this time of the year. Sadly, this pandemic has not only radically changed our work and our lives, but it has also dampened the festive mood of Christmas. With Tuloy Pa Rin Ang Pasko, our group aims to ignite even the smallest spark of hope in our countrymen and let them know that they can count on us,” said Group Chairman Manuel V Pangilinan.
The MVP Group aims to reach out to communities from Luzon, Visayas and Mindanao. These include Aeata communities in Sitio Villa Maria in Porac, Pampanga; blind masseurs in Sta. Mesa, Manila; indigent patients and hospital personnel from the East Avenue Medical Center; jeepney and tricycle drivers from General Santos City, Manila and select towns in Batangas; students and low-income households from Cagbalete Island, Quezon and Dona Remedios Trinidad in Bulacan which Meralco energized, persons with disability community, vegetable vendors from Sitio Magnolia in Quezon City; Sining Ipo Indigent Dumagats; Dumagat farmers in Marikina Watershed; and farmers in North and Central Luzon.
The Group also provided support to various sectors, including Caritas Manila; Radio Veritas; affected communities of Taal eruption and recent typhoons; Jolohanon Women’s Association, a Tausug fishing village in Jolo; Pangasinan farmers that were supported by Smart through its #BuyLocal campaign and sustainability fund; lastly, Metro Pacific Investments Foundation delivered 200 Noche Buena packages to boatmen and their families whose livelihoods have been destroyed during the onslaught of successive typhoons in Mabini, Batangas.
Other areas across the country include Mabini, Batangas; Siargao; Alaminos City; Puerto Galera; Albay; Cagayan; Camarines Sur; Camarines Norte; Isabela; Batangas; Catanduanes; Tuguegarao City; Surigao City; Aloguinsan and Boljoon, Cebu; Zamboanga City; Iligan City; and Quezon Province.
“I commend all our employees who are stepping up to give some of what they have for this endeavor. This bayanihan spirit is what will help us rise and overcome our challenges and make us appreciate the true essence of Christmas,” Pangilinan said.
The Tuloy Pa Rin Ang Pasko initiative also introduces an anthem composed exclusively for the campaign that aims to uplift Filipinos’ spirits this season.
Diesel prices up by P0.85/liter; gasoline by P0.75 per liter
Published December 21, 2020, 1:14 PM by Myrna M. Velasco
https://mb.com.ph/2020/12/21/diesel-prices-up-by-p0-85-liter-gasoline-by-p0-75-per-liter/
Just several days before Christmas and Filipino consumers will still need to fork out more cash for their fuel expenses this week as diesel prices will be up by P0.85 per liter; and diesel by P0.75 per liter.
The oil firms also sent notices that the price of kerosene will go higher by P0.80 per liter, as advised by the oil companies given the escalating prices in the world market.
As of this writing, the oil firms that already sent notices on their price hikes had been Pilipinas Shell Petroleum Corporation, Seaoil, PetroGazz and Cleanfuel effective Tuesday (December 22); while the rest of their industry-competitors are anticipated to follow.
Despite the series of hikes in fuel prices, it is apparent that Filipino motorists are increasingly on the road these days either due to Christmas rush shopping; or for the ending salvo in the workloads prior to the holidays.
For next year, the forecast of experts will be continuing wave of price upticks because of wider re-opening of most economies all over the world; and with the Covid-19 vaccine now accessible in many countries, travel is also seen perked up by 2021.
It had been aviation fuel sales that plummeted the most this year because of the enforced restriction in the movement of people, while the Covid-19 pandemic stalled businesses and most human activities globally.
In the Philippines, in particular, it was not only the pandemic that distressed Filipino consumers, but also the string of natural calamities that pummeled the country, especially in October and November this year.
And while ‘price freeze’ could be imposed for certain products – primarily kerosene and liquefied petroleum gas (LPG) in calamity-barreled areas, it was observed by advocacy group Laban Konsyumer Inc. (LKI) that this has not been strictly followed by some players in several jurisdictions.
This was formally brought up by LKI President Victorio Mario Dimagiba to the attention of the Department of Energy (DOE), but he has not gotten official response yet from the agency.
Dimagiba primarily sought that if the DOE, upon investigation and findings will establish any violation of Presidential Proclamation 1051, “we pray that appropriate fines be imposed on the errant oil companies and rollback the prices of kerosene and LPG for such number of days of violation.”
Nevertheless, DOE-Oil Industry Management Bureau (OIMB) Director Rino Abad indicated that based on their field investigation of 50 gasoline stations and 24 LPG outlets in the flood-stricken areas of Marikina, Rizal and Valenzuela last November, they have not found any price freeze violation of the industry players.
“In that case, in what LKI said, we are actually interested in knowing exactly what facilities it was referring to that have increased prices. But in our actual inspections, there not been a single case that we have seen increasing,” the energy official stressed.
https://mb.com.ph/2020/12/21/diesel-prices-up-by-p0-85-liter-gasoline-by-p0-75-per-liter/
Just several days before Christmas and Filipino consumers will still need to fork out more cash for their fuel expenses this week as diesel prices will be up by P0.85 per liter; and diesel by P0.75 per liter.
The oil firms also sent notices that the price of kerosene will go higher by P0.80 per liter, as advised by the oil companies given the escalating prices in the world market.
As of this writing, the oil firms that already sent notices on their price hikes had been Pilipinas Shell Petroleum Corporation, Seaoil, PetroGazz and Cleanfuel effective Tuesday (December 22); while the rest of their industry-competitors are anticipated to follow.
Despite the series of hikes in fuel prices, it is apparent that Filipino motorists are increasingly on the road these days either due to Christmas rush shopping; or for the ending salvo in the workloads prior to the holidays.
For next year, the forecast of experts will be continuing wave of price upticks because of wider re-opening of most economies all over the world; and with the Covid-19 vaccine now accessible in many countries, travel is also seen perked up by 2021.
It had been aviation fuel sales that plummeted the most this year because of the enforced restriction in the movement of people, while the Covid-19 pandemic stalled businesses and most human activities globally.
In the Philippines, in particular, it was not only the pandemic that distressed Filipino consumers, but also the string of natural calamities that pummeled the country, especially in October and November this year.
And while ‘price freeze’ could be imposed for certain products – primarily kerosene and liquefied petroleum gas (LPG) in calamity-barreled areas, it was observed by advocacy group Laban Konsyumer Inc. (LKI) that this has not been strictly followed by some players in several jurisdictions.
This was formally brought up by LKI President Victorio Mario Dimagiba to the attention of the Department of Energy (DOE), but he has not gotten official response yet from the agency.
Dimagiba primarily sought that if the DOE, upon investigation and findings will establish any violation of Presidential Proclamation 1051, “we pray that appropriate fines be imposed on the errant oil companies and rollback the prices of kerosene and LPG for such number of days of violation.”
Nevertheless, DOE-Oil Industry Management Bureau (OIMB) Director Rino Abad indicated that based on their field investigation of 50 gasoline stations and 24 LPG outlets in the flood-stricken areas of Marikina, Rizal and Valenzuela last November, they have not found any price freeze violation of the industry players.
“In that case, in what LKI said, we are actually interested in knowing exactly what facilities it was referring to that have increased prices. But in our actual inspections, there not been a single case that we have seen increasing,” the energy official stressed.
Aboitiz Power eyes P30-b bond offering
posted December 21, 2020 at 09:15 pm by Alena Mae S. Flores
https://manilastandard.net/business/power-technology/342612/aboitiz-power-eyes-p30-b-bond-offering.html
Aboitiz Power Corp. said Monday it filed the registration statement for its proposed P30-billion fixed-rate retail bonds with the Securities and Exchange Commission.
Aboitiz Power said the bonds would be under the shelf-registration program of the SEC.
It said the first tranche of the bonds―with a base issue size of up to P4 billion and an oversubscription option for another P4 billion―is expected to be offered to the general public during the first quarter next year.
“Aboitiz Power expects to issue subsequent tranches of the bonds under this shelf registration statement, as the need arises and as market conditions permit,” the company said.
Philippine Ratings Services Corp. assigned an issue credit rating of “PRS Aaa” with stable outlook for the first tranche bonds.
Aboitiz Power intends to use the proceeds from the first tranche bonds for refinancing and/or for other general corporate purposes.
Monday, December 21, 2020
Banks urged to stop financing coal projects
Danessa Rivera (The Philippine Star) - December 21, 2020 - 12:00am
https://www.philstar.com/business/2020/12/21/2065197/banks-urged-stop-financing-coal-projects
MANILA, Philippines — Philippine banks are urged to phase out coal lending entirely as a report showed 15 local banks released over $13 billion to finance coal projects in the past decade.
The Coal Divestment Scorecard, published by the Withdraw from Coal (WFC) Campaign, showed that 15 Philippine banks channeled $13.42 billion to coal developer companies and coal projects from 2009 to 2019.
“Philippine banks and other financiers have caused the expansion of coal in the past decade, thanks to their financial services to coal developers and project. Withdraw from Coal continues to urge Philippine banks to have policies and timelines to phase out coal in their work,” said Bishop Gerry Alminaza of the Diocese of San Carlos, co-convenor of WFC.
The Coal Divestment Scorecard, based on a criteria launched by the network of civil society groups, church leaders, environmentalists, and faith-based groups was released earlier in May.
WFC since engaged with these banks to ensure a participative grading process, an effort which was varyingly welcomed by at least eight banks.
“We, however, appreciate how open the bank has been to engaging with stakeholders in WFC, and believe that its score would improve in future rounds of grading, if only the hopes they shared for a power portfolio dominated by renewables by the end of this decade will be translated into a public position against coal,” said Gerry Arances, executive director of the Center for Energy, Ecology, and Development (CEED).
He said BPI is one of the banks leading the way in terms of climate action and sustainability efforts.
In June last year, BPI established the Green Finance Framework, highlighting its long-standing commitment to fund projects with clear environmental benefits.
It details guidelines for the following with respect to any green bonds or loans to be issued by the bank: evaluation and selection of eligible projects, management of proceeds and reporting.
The framework is aligned with the International Capital Market Association Green Bond Principles, the ASEAN Green Bond Standards, and the Loan Market Association Green Loan Principles.
RCBC, the bank which recently declared that it would no longer be financing coal, leads among local banks in divestment efforts, but only with a measly 0.673 score as the bank has yet to disclose its policy against coal, the report said.
RCBC president and CEO Eugene Acevedo recently said the Yuchengco-led bank would no longer fund new coal power projects moving forward.
“Moving forward, all our loans for energy projects will be non-coal, it will be 100 percent non coal,” he said.
Acevedo said the trend in the banking industry is to move away from coal funding, with no big loans to the traditional power technology in the last two years.
RCBC will focus its lending on clean energy projects such as renewable and gas-fired plants.
What is needed next from the Philippine banks is a coal exit plan for their financing, using transparent criteria for a continuous coal phase-out ending no later than 2040. Only then, banks can claim to truly support the 1.5° limit of Global Warming that was agreed upon in Paris,” said Katrin Ganswindt of German research organization Urgewald.
WFC said the scoring process was modeled after the practice of international fossil fuel finance research organizations such as Urgewald and Reclaim Finance, the groups behind earlier initiatives such as the Coal Policy Tool and the Global Coal Exit List, a coal exposure assessment tool being used by the likes of the International Finance Corp. (IFC).
WFC intends to send the grading outcome to the 15 banks and continue engaging them toward next rounds of assessment.
“It is our hope that through this initiative, we are able to assist the banks in reevaluating their responsibilities in the climate sphere and towards the Filipino public,” Alminaza said.
https://www.philstar.com/business/2020/12/21/2065197/banks-urged-stop-financing-coal-projects
MANILA, Philippines — Philippine banks are urged to phase out coal lending entirely as a report showed 15 local banks released over $13 billion to finance coal projects in the past decade.
The Coal Divestment Scorecard, published by the Withdraw from Coal (WFC) Campaign, showed that 15 Philippine banks channeled $13.42 billion to coal developer companies and coal projects from 2009 to 2019.
“Philippine banks and other financiers have caused the expansion of coal in the past decade, thanks to their financial services to coal developers and project. Withdraw from Coal continues to urge Philippine banks to have policies and timelines to phase out coal in their work,” said Bishop Gerry Alminaza of the Diocese of San Carlos, co-convenor of WFC.
The Coal Divestment Scorecard, based on a criteria launched by the network of civil society groups, church leaders, environmentalists, and faith-based groups was released earlier in May.
WFC since engaged with these banks to ensure a participative grading process, an effort which was varyingly welcomed by at least eight banks.
“We, however, appreciate how open the bank has been to engaging with stakeholders in WFC, and believe that its score would improve in future rounds of grading, if only the hopes they shared for a power portfolio dominated by renewables by the end of this decade will be translated into a public position against coal,” said Gerry Arances, executive director of the Center for Energy, Ecology, and Development (CEED).
He said BPI is one of the banks leading the way in terms of climate action and sustainability efforts.
In June last year, BPI established the Green Finance Framework, highlighting its long-standing commitment to fund projects with clear environmental benefits.
It details guidelines for the following with respect to any green bonds or loans to be issued by the bank: evaluation and selection of eligible projects, management of proceeds and reporting.
The framework is aligned with the International Capital Market Association Green Bond Principles, the ASEAN Green Bond Standards, and the Loan Market Association Green Loan Principles.
RCBC, the bank which recently declared that it would no longer be financing coal, leads among local banks in divestment efforts, but only with a measly 0.673 score as the bank has yet to disclose its policy against coal, the report said.
RCBC president and CEO Eugene Acevedo recently said the Yuchengco-led bank would no longer fund new coal power projects moving forward.
“Moving forward, all our loans for energy projects will be non-coal, it will be 100 percent non coal,” he said.
Acevedo said the trend in the banking industry is to move away from coal funding, with no big loans to the traditional power technology in the last two years.
RCBC will focus its lending on clean energy projects such as renewable and gas-fired plants.
What is needed next from the Philippine banks is a coal exit plan for their financing, using transparent criteria for a continuous coal phase-out ending no later than 2040. Only then, banks can claim to truly support the 1.5° limit of Global Warming that was agreed upon in Paris,” said Katrin Ganswindt of German research organization Urgewald.
WFC said the scoring process was modeled after the practice of international fossil fuel finance research organizations such as Urgewald and Reclaim Finance, the groups behind earlier initiatives such as the Coal Policy Tool and the Global Coal Exit List, a coal exposure assessment tool being used by the likes of the International Finance Corp. (IFC).
WFC intends to send the grading outcome to the 15 banks and continue engaging them toward next rounds of assessment.
“It is our hope that through this initiative, we are able to assist the banks in reevaluating their responsibilities in the climate sphere and towards the Filipino public,” Alminaza said.
NGCP to upgrade wind rating of transmission towers
Danessa Rivera (The Philippine Star) - December 21, 2020 - 12:00am
https://www.philstar.com/business/2020/12/21/2065196/ngcp-upgrade-wind-rating-transmission-towers
MANILA, Philippines — The National Grid Corp. of the Philippines (NGCP) is looking at upgrading the wind rating of its transmission towers after successive strong typhoons battered its system last month.
In a virtual briefing last week, NGCP spokesperson Cynthia Alabanza said the company is conducting a study on the upgrade of the wind rating of its transmission towers.
“Part of the study that goes into permanent restoration and upgrading would be to maximize or make it as efficient as possible, to identify the areas that require upgrade,” Alabanza said.
“One of the things we’re looking at is the eastern seaboard since the direction of typhoons don’t change. We are looking at which areas of the eastern seaboard need immediate upgrade,” Alabanza said.
This is following the passage of destructive triple typhoons, including the world’s strongest typhoon for 2020, Typhoon Rolly.
Super Typhoon Rolly battered the Southern Tagalog and Bicol regions.
The US’ Joint Typhoon Warning Center (JTWC) estimated Rolly’s maximum sustained winds to be 315 kilometers per hour, while the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) said its peak winds reached 225 kph.
The super typhoon matched the peak wind speed of Super Typhoon Yolanda in November 2013.
“Rolly was a particularly strong typhoon so we’re studying upgrading the rating,” Alabanza said.
The conduct of the study to upgrade facilities started in 2013 when Yolanda battered Central Philippines.
“After Yolanda, the wind rating of transmission facilities were upgraded to withstand 240 to 280 kph,” Alabanza said.
Since then, the company conducts a comprehensive review of its facilities to assess whether these can endure typhoons, earthquakes, and other calamities. Beyond constructing flood walls in its offices, the grid operator is looking into introducing resilient tower designs that could weather strong typhoons.
https://www.philstar.com/business/2020/12/21/2065196/ngcp-upgrade-wind-rating-transmission-towers
MANILA, Philippines — The National Grid Corp. of the Philippines (NGCP) is looking at upgrading the wind rating of its transmission towers after successive strong typhoons battered its system last month.
In a virtual briefing last week, NGCP spokesperson Cynthia Alabanza said the company is conducting a study on the upgrade of the wind rating of its transmission towers.
“Part of the study that goes into permanent restoration and upgrading would be to maximize or make it as efficient as possible, to identify the areas that require upgrade,” Alabanza said.
“One of the things we’re looking at is the eastern seaboard since the direction of typhoons don’t change. We are looking at which areas of the eastern seaboard need immediate upgrade,” Alabanza said.
This is following the passage of destructive triple typhoons, including the world’s strongest typhoon for 2020, Typhoon Rolly.
Super Typhoon Rolly battered the Southern Tagalog and Bicol regions.
The US’ Joint Typhoon Warning Center (JTWC) estimated Rolly’s maximum sustained winds to be 315 kilometers per hour, while the Philippine Atmospheric, Geophysical and Astronomical Services Administration (PAGASA) said its peak winds reached 225 kph.
The super typhoon matched the peak wind speed of Super Typhoon Yolanda in November 2013.
“Rolly was a particularly strong typhoon so we’re studying upgrading the rating,” Alabanza said.
The conduct of the study to upgrade facilities started in 2013 when Yolanda battered Central Philippines.
“After Yolanda, the wind rating of transmission facilities were upgraded to withstand 240 to 280 kph,” Alabanza said.
Since then, the company conducts a comprehensive review of its facilities to assess whether these can endure typhoons, earthquakes, and other calamities. Beyond constructing flood walls in its offices, the grid operator is looking into introducing resilient tower designs that could weather strong typhoons.
RE firms eye P35.7B from FIT subsidies
Published December 21, 2020, 7:00 AM by Myrna M. Velasco
https://mb.com.ph/2020/12/21/re-firms-eye-p35-7b-from-fit-subsidies/
The country’s renewable energy (RE) developers are eyeing to rake in next year P35.693 billion worth of feed-in-tariff (FIT) payments, a form of subsidy collected from all Filipino electricity ratepayers.
That will be an increase of roughly P5.0 billion from the FIT revenues set for year 2020 at P30.792 billion.
The aggregate FIT collections next year had been based on the application filed by FIT fund administrator National Transmission Corporation (TransCo) with the Energy Regulatory Commission.
In that filing, TransCo is seeking for P0.1881 per kilowatt hour FIT-Allowance charge that shall be passed on in the electric bills next year; or in the alternative, it could also be a FIT-All of P0.2008 per kWh.
The ERC has scheduled virtual public hearings on the updated FIT-All application of TransCo from January 6 to February 4 next year, as culled from notices it sent to relevant industry stakeholders.
The FIT revenues of the RE players had been relentlessly escalating since the initial enforcement in 2012 until this year, and beyond the P35 billion FIT payments next year. This is seen rising further to P35.825 billion in 2022.
Based on data filed with the ERC, FIT revenues of the RE companies had been at P10.194 billion around 2012-2015; then it climbed to P17.397 billion in 2016; P20.445 billion in 2017; P22.769 billion in 2018; and P24.847 billion in 2019.
For next year, the biggest pie of P11.139 billion of FIT payments will go to biomass developers; followed by wind industry players who will be cornering P10.058 billion; solar will get P7.649 billion; while hydropower’s share will be P6.847 billion.
As explained, the estimated FIT revenues had been calculated by multiplying the eligible RE generation per technology by their corresponding appropriate FIT rates.
In the estimated FIT revenues for next year, it was similarly stipulated that there will be recoveries of FIT differentials spanning from 2015 to 2020, in the scale of: P113.932 million for 2015; P340.556 million for 2016; P70.296 million for 2017; P62.813 million for 2018; P181.380 million for 2019; and P809.152 million for 2020.
This early, however, advocacy group Laban Konsyumer Inc. (LKI) is asking the ERC “to reverse the hefty increases in the FIT rate,” if referenced on a resolution that was issued for FIT rate adjustment issued by the ERC early this year.
LKI President Victorio Mario Dimagiba primarily sounded off alarm that “consumers will bear the brunt of higher rates.”
He highlighted that the FIT rate of solar in particular will be rising to as much as P11.2758 per kWh, even higher than the prescribed first wave FIT rate of P9.68 per kWh in 2014.
For wind, its FIT will also climb to P9.8976 per kWh, higher by P1.3676 per kWh compared to the FIT rate set for the first wave of developers at P8.53 per kWh, as enforced also in 2014.
“Easily, these are almost P2.00 and more than P1.00 per kWh adjustment for solar and wind FIT rates, respectively, that will have to be unfairly borne by the consumers,” Dimagiba stressed.
https://mb.com.ph/2020/12/21/re-firms-eye-p35-7b-from-fit-subsidies/
The country’s renewable energy (RE) developers are eyeing to rake in next year P35.693 billion worth of feed-in-tariff (FIT) payments, a form of subsidy collected from all Filipino electricity ratepayers.
That will be an increase of roughly P5.0 billion from the FIT revenues set for year 2020 at P30.792 billion.
The aggregate FIT collections next year had been based on the application filed by FIT fund administrator National Transmission Corporation (TransCo) with the Energy Regulatory Commission.
In that filing, TransCo is seeking for P0.1881 per kilowatt hour FIT-Allowance charge that shall be passed on in the electric bills next year; or in the alternative, it could also be a FIT-All of P0.2008 per kWh.
The ERC has scheduled virtual public hearings on the updated FIT-All application of TransCo from January 6 to February 4 next year, as culled from notices it sent to relevant industry stakeholders.
The FIT revenues of the RE players had been relentlessly escalating since the initial enforcement in 2012 until this year, and beyond the P35 billion FIT payments next year. This is seen rising further to P35.825 billion in 2022.
Based on data filed with the ERC, FIT revenues of the RE companies had been at P10.194 billion around 2012-2015; then it climbed to P17.397 billion in 2016; P20.445 billion in 2017; P22.769 billion in 2018; and P24.847 billion in 2019.
For next year, the biggest pie of P11.139 billion of FIT payments will go to biomass developers; followed by wind industry players who will be cornering P10.058 billion; solar will get P7.649 billion; while hydropower’s share will be P6.847 billion.
As explained, the estimated FIT revenues had been calculated by multiplying the eligible RE generation per technology by their corresponding appropriate FIT rates.
In the estimated FIT revenues for next year, it was similarly stipulated that there will be recoveries of FIT differentials spanning from 2015 to 2020, in the scale of: P113.932 million for 2015; P340.556 million for 2016; P70.296 million for 2017; P62.813 million for 2018; P181.380 million for 2019; and P809.152 million for 2020.
This early, however, advocacy group Laban Konsyumer Inc. (LKI) is asking the ERC “to reverse the hefty increases in the FIT rate,” if referenced on a resolution that was issued for FIT rate adjustment issued by the ERC early this year.
LKI President Victorio Mario Dimagiba primarily sounded off alarm that “consumers will bear the brunt of higher rates.”
He highlighted that the FIT rate of solar in particular will be rising to as much as P11.2758 per kWh, even higher than the prescribed first wave FIT rate of P9.68 per kWh in 2014.
For wind, its FIT will also climb to P9.8976 per kWh, higher by P1.3676 per kWh compared to the FIT rate set for the first wave of developers at P8.53 per kWh, as enforced also in 2014.
“Easily, these are almost P2.00 and more than P1.00 per kWh adjustment for solar and wind FIT rates, respectively, that will have to be unfairly borne by the consumers,” Dimagiba stressed.
Diesel prices up by P0.85/liter; gasoline by P0.75 per liter
Published December 21, 2020, 1:14 PM by Myrna M. Velasco
https://mb.com.ph/2020/12/21/diesel-prices-up-by-p0-85-liter-gasoline-by-p0-75-per-liter/
Just several days before Christmas and Filipino consumers will still need to fork out more cash for their fuel expenses this week as diesel prices will be up by P0.85 per liter; and diesel by P0.75 per liter.
The oil firms also sent notices that the price of kerosene will go higher by P0.80 per liter, as advised by the oil companies given the escalating prices in the world market.
As of this writing, the oil firms that already sent notices on their price hikes had been Pilipinas Shell Petroleum Corporation, Seaoil, PetroGazz and Cleanfuel effective Tuesday (December 22); while the rest of their industry-competitors are anticipated to follow.
Despite the series of hikes in fuel prices, it is apparent that Filipino motorists are increasingly on the road these days either due to Christmas rush shopping; or for the ending salvo in the workloads prior to the holidays.
For next year, the forecast of experts will be continuing wave of price upticks because of wider re-opening of most economies all over the world; and with the Covid-19 vaccine now accessible in many countries, travel is also seen perked up by 2021.
It had been aviation fuel sales that plummeted the most this year because of the enforced restriction in the movement of people, while the Covid-19 pandemic stalled businesses and most human activities globally.
In the Philippines, in particular, it was not only the pandemic that distressed Filipino consumers, but also the string of natural calamities that pummeled the country, especially in October and November this year.
And while ‘price freeze’ could be imposed for certain products – primarily kerosene and liquefied petroleum gas (LPG) in calamity-barreled areas, it was observed by advocacy group Laban Konsyumer Inc. (LKI) that this has not been strictly followed by some players in several jurisdictions.
This was formally brought up by LKI President Victorio Mario Dimagiba to the attention of the Department of Energy (DOE), but he has not gotten official response yet from the agency.
Dimagiba primarily sought that if the DOE, upon investigation and findings will establish any violation of Presidential Proclamation 1051, “we pray that appropriate fines be imposed on the errant oil companies and rollback the prices of kerosene and LPG for such number of days of violation.”
Nevertheless, DOE-Oil Industry Management Bureau (OIMB) Director Rino Abad indicated that based on their field investigation of 50 gasoline stations and 24 LPG outlets in the flood-stricken areas of Marikina, Rizal and Valenzuela last November, they have not found any price freeze violation of the industry players.
“In that case, in what LKI said, we are actually interested in knowing exactly what facilities it was referring to that have increased prices. But in our actual inspections, there not been a single case that we have seen increasing,” the energy official stressed.
https://mb.com.ph/2020/12/21/diesel-prices-up-by-p0-85-liter-gasoline-by-p0-75-per-liter/
Just several days before Christmas and Filipino consumers will still need to fork out more cash for their fuel expenses this week as diesel prices will be up by P0.85 per liter; and diesel by P0.75 per liter.
The oil firms also sent notices that the price of kerosene will go higher by P0.80 per liter, as advised by the oil companies given the escalating prices in the world market.
As of this writing, the oil firms that already sent notices on their price hikes had been Pilipinas Shell Petroleum Corporation, Seaoil, PetroGazz and Cleanfuel effective Tuesday (December 22); while the rest of their industry-competitors are anticipated to follow.
Despite the series of hikes in fuel prices, it is apparent that Filipino motorists are increasingly on the road these days either due to Christmas rush shopping; or for the ending salvo in the workloads prior to the holidays.
For next year, the forecast of experts will be continuing wave of price upticks because of wider re-opening of most economies all over the world; and with the Covid-19 vaccine now accessible in many countries, travel is also seen perked up by 2021.
It had been aviation fuel sales that plummeted the most this year because of the enforced restriction in the movement of people, while the Covid-19 pandemic stalled businesses and most human activities globally.
In the Philippines, in particular, it was not only the pandemic that distressed Filipino consumers, but also the string of natural calamities that pummeled the country, especially in October and November this year.
And while ‘price freeze’ could be imposed for certain products – primarily kerosene and liquefied petroleum gas (LPG) in calamity-barreled areas, it was observed by advocacy group Laban Konsyumer Inc. (LKI) that this has not been strictly followed by some players in several jurisdictions.
This was formally brought up by LKI President Victorio Mario Dimagiba to the attention of the Department of Energy (DOE), but he has not gotten official response yet from the agency.
Dimagiba primarily sought that if the DOE, upon investigation and findings will establish any violation of Presidential Proclamation 1051, “we pray that appropriate fines be imposed on the errant oil companies and rollback the prices of kerosene and LPG for such number of days of violation.”
Nevertheless, DOE-Oil Industry Management Bureau (OIMB) Director Rino Abad indicated that based on their field investigation of 50 gasoline stations and 24 LPG outlets in the flood-stricken areas of Marikina, Rizal and Valenzuela last November, they have not found any price freeze violation of the industry players.
“In that case, in what LKI said, we are actually interested in knowing exactly what facilities it was referring to that have increased prices. But in our actual inspections, there not been a single case that we have seen increasing,” the energy official stressed.
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