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First Gen Receives Notice To Proceed With LNG Terminal Project

ENERGY - Philippines
March 2019

FGEN LNG Corporation (FGEN LNG), a wholly-owned subsidiary of Philippine energy company, First Gen Corporation (First Gen), has learned of the approval of its application for a Notice to Proceed (NTP) from the Department of Energy (DOE) as required by the Philippine Downstream Natural Gas Regulation (PDNGR). As per First Gen, they are awaiting the formal notice from the DOE. The application was for the construction of the FGEN Batangas LNG Terminal Project to be located in the First Gen Clean Energy Complex in Batangas City.

Japan-based utility company, Tokyo Gas, plans to hold a 20% stake in the project that is expected to commence operations in 2023. The project aims to construct and operate the first LNG receiving terminal in the Philippines. The FGEN Batangas LNG Terminal Project is intended to serve the natural gas requirements of existing and future gas-fired power plants of third parties and FGEN LNG affiliates.The new terminal will have an annual capacity of 5.26 million tons and investment cost is estimated to be USD 10 billion.

First Gen decided to build the gas import terminal due to the projected depletion of local supplies by 2024. The Philippine government has thus far approved 2 LNG hubs projects. The partnership with Tokyo Gas and First Gen is the largest in capacity size. 

First Gen is one of the biggest independent power producers in the country and the leading gas power generation company in the Philippines with approximately 2,000 MW in operating gas assets composed of four gas-fired power plants – the 1,000 MW Santa Rita Power Plant, the 500 MW San Lorenzo Power Plant, the 414 MW San Gabriel Power Plant and the 97 MW Avion Power Plant, all of which currently operate on Malampaya gas supply.

(Sources: First Gen; The Japan Times) 

Philippines Department of Energy Plans To Standardize E-Vehicle Charging Stations

ENERGY - Philippines
February 2019

The Department of Energy (DOE) of the Philippines is drafting a regulatory framework that aims to standardize charging stations in support of the country’s electric vehicle (EV) industry. According to DOE, the proposals are now under the final review of the Office of the Secretary and will be released within the year.

In November 2017, Unioil launched an EV charging facility at its fueling station along Congressional Ave. Extension in Quezon City, becoming the first petroleum company in the Philippines to do so. Unioil’s EV charging station has the latest Chademo fast-charging protocol, which is compatible with most Japanese, US and European electric vehicles, as well as the competing protocol combined charging system. 

The DOE will select a single charging protocol but it is not known yet which would be the selected protocol. Proposals for the standards will then be submitted to the Asian Development Bank (ADB) to secure funding from its Clean Technology Fund (CTF).

DOE is currently using a loan from the CTF for its e-trike project. The overall objective of the project is to replace 100,000 gasoline-fueled tricycles with three-wheeled plug-in electric vehicles or e-trikes that use rechargeable batteries. Out of the 3,000 e-trikes ready for deployment, over 1,200 have been donated to several LGUs namely the cities of Marawi, Valenzuela, Muntinlupa, Las Piñas and Pateros. The latest LGU is Mandaluyong City.

(Source: The Philippine Star; Asian Development Bank)
 

Tanglawan Philippine LNG Inc Receives Approval To Build Terminal

ENERGY - Philippines
January 2019

The Tanglawan Philippine LNG Inc has been granted by the Department of Energy the Notice to Proceed to build an LNG terminal in Batangas. The company plans to break ground by 2019 for the regasification and receiving terminal with a capacity of 2.2 mtpa, with commercial operations targeted to start by 2023.

The LNG facility will help support the demand for a clean, low-cost, and environment friendly energy source in Luzon and contribute to the sustainable development of the Philippine economy. The integrated long-term project plan also aims to develop a gas-fired power generation facility with up to 2,000 megawatts installed capacity.

A possible joint venture arrangement for Tanglawan Philippine LNG Inc. is currently being discussed between China’s largest LNG importer and terminal operator, CNOOC Gas and Power Group Co., Ltd., and Philippine’s fastest-growing oil company, Phoenix Petroleum.

(Source: Phoenix Petroleum)

 

Philippines, China Sign MOU on Joint Gas, Oil Developement

ENERGY - Philippines
November 2018

The Philippines and China have signed a Memorandum of Understanding (MOU) for cooperation in oil and gas exploration and development in the West Philippine Sea during the state visit of Chinese President Xi Jingping in the Philippines.

The MOU will serve as a framework on future negotiations between the two nations on how they can collaboratively explore the oil and gas in the West Philippine Sea. According to the memorandum, Beijing and Manila will create an Inter-Governmental Joint Steering Committee and one or more inter-entrepreneurial working groups that will be composed of government officials, relevant agencies, and other individuals from both the Philippines and China.

The Steering Committee will be chaired by the Foreign Ministries of both countries and the vice chair will be their respective Energy Ministers. The inter-entrepreneurial working groups on the other hand, shall be composed of representatives from enterprises authorized by the two governments, in which China already identified its State-Owned China National Offshore Oil Corporation (CNOOC) to be its representative in all working groups.

The MOU however, which was among the 29 agreements signed by the two countries, does not indicate the specific areas to be covered by the joint exploration.

(Sources: Oil & Gas Journal; Philippine Daily Inquirer; Business Mirror)

Philippines Inks Oil Exploration Deal with Israeli Firm

ENERGY - Philippines
October 2018

The Philippine government signed a seven-year oil and gas exploration deal with Israeli firm, Ratio Petroleum Ltd. President Rodrigo Duterte signed the Petroleum Service Contract (PSC) 76 which covers around 416,000 hectares east of Palawan waters. The agreement with an estimated value of USD 34.35 million is under the Fifth Philippine Energy Contracting Round (PECR-5) program of Department of Energy (DOE). PECR-5 offers 11 areas for oil exploration mostly located in Luzon, and fifteen areas for coal exploration in Mindanao. The last PSC signed was back in 2013, for an oil exploration in the northeast of Palawan with PXP Energy Corp.

According to the Secretary of DOE, the Philippines need to beef up the exploration and development of energy sources to attain energy security and sustainability and this kind of deal is a step forward.

(Sources: Department of Energy, CNN Philippines, Investine)

Philippine National Oil Co Seeks Partner For LNG Terminal

ENERGY - Philippines
September 2018

Government-owned Philippine National Oil Co. (PNOC) is shifting from unsolicited tender to solicited tender scheme for liquefied natural gas (LNG) terminal facility in the country.

According to the Department of Energy (DOE), there were no compliant or comprehensive tenders received during the unsolicited bidding scheme. PNOC received offers from several firms including Korea Electric Power Corp. (Kepco), Lloyds Energy Group and China National Offshore Oil Co. (CNOOC), First Gen Corp., Energy World Corp., PT. Jaya Samudra Karunia, and PT PGN LNG Indonesia/PT Bosowa Corporindo with their local partner MOF Corp.

Lloyds Energy Group of Dubai was the first in line among the interested organizations who expressed its intention to submit a proposal for partnership with PNOC to build the LNG terminal hub soon. Meanwhile, First Gen Corp. of the Lopez Group also expressed interest in partnering with PNOC. However, proponents have to wait until PNOC and the Asian Development Bank (ADB) to finish formulating the guidelines for the solicited scheme. ADB was tapped by PNOC to be its consultant in finding a suitable partner and development of the LNG hub.

The key features of the LNG project under the PNOC’s solicited scheme, which is estimated to cost between USD 600 million to USD 1.4 billion are the following:

  • Minimum capacity of three metric tons per annum, equivalent to 3,000 MW to cover existing immediate needs with future increase to five MPTA.
  • Phased development to cope with future market developments.
  • Flexibility to allow Floating Storage and Regasification Unit in the first phase, but eventually, the terminal will be land-based as demand increase and to ensure greater security.
  • Implemented as a joint-venture with PNOC to ensure public oversight of the project development and operation.
  • PNOC would make site available in the Batangas area.

(Sources: Business Mirror, Manila Standard. Philippine Star, Manila Bulletin, Philippine Resources)

San Miguel Corporation Plans Huge Renewable Energy Investment

ENERGY - Philippines
August 2018

San Miguel Corporation (SMC) recently announced its plans to invest heavily in renewable energy, that will potentially expand its portfolio by up to 10,000 megawatts (MW). The conglomerate’s power unit, SMC Global Power Holdings Corporation, will facilitate the renewable energy projects in the next 10 years.

SMC is looking to invest in hydro-electric, wind, battery storage and tidal power projects. It is not interested in solar power projects. 

The company will be interested in any available opportunities for hydro-electric power projects in the country with at least 1,000 MW capacity. In the second quarter of 2017, Department of Energy (DOE) approved three power projects of SMC namely, 100-MW Nabuangan run-of-river hydro in Apayao, the 500-MW Dingalan pumped storage hydroelectric plant in Aurora; and the 400-MW San Roque Lower East Pumped Storage in Pangasinan. Then, in August last year, it announced to build a 500-MW pumped storage hydro project in Tarlac province.

For wind energy projects, SMC already identified a site location in Luzon for its first project. It did not reveal the exact location and capacity but said that it will be huge, and the land is already owned by the firm.

SMC is also eyeing the installation of battery storage in all of its facilities if possible and as many as it can possibly put up. For its tidal energy projects, the company indicated last year that it will submit a 1,200 MW tidal power plant project to DOE for approval.

(Sources: Business Mirror; ABS CBN News; Manila Standard)

DOE Philippines To Award 9 More Petroleum Service Contracts By 2022

ENERGY - Philippines
July 2018

The Department of Energy (DOE) in the Philippines anticipates that it will award nine more petroleum service contracts (PSC) over the next four years under its revised Philippine Conventional Energy Contracting Program. Five of the prospective PSCs would be for oil production, three would be gas and one would be for associated condensate. The DOE has set a goal of increasing delineated oil from 42.79 thousand barrels (MMB) per day to 78.73 MMB. Gas production could be increased to 4.67 trillion cubic feet (TCF) from 3.09 TCF, and condensate output to 47.24 MMB from 30.28MMB per day.

While the modified contracting program could accelerate the awarding of PSCs, investors expressed dismay on the content of the proposed second package of Tax Reform for Acceleration and Inclusion (TRAIN-2) Act, which will reduce tax perks. The TRAIN-2 proposal imposes 20% rate on tax payments by oil and gas service contractors, decreases the length of income tax holidays and the timeframe on duty-free importation of machinery and equipment. It will also remove the Filipino participation incentive allowance (FPIA). Petroleum Investors are currently appealing to the Department of Finance (DOF) to exempt the sector from the TRAIN-2 Law. 

In January this year, DOE issued a circular revising the process for awarding petroleum service contracts, with the aim of implementing a simpler and faster public contracting program. Under the new process, applicants will nominate the areas of their interest. Following approval by the review and evaluation committee, the applicant will publish its nominated area, which will be subject to challenge by other parties. Interested parties will have 60 days from the date of publication to submit their respective applications for the area. The applicants will be ranked based on legal qualification, work program, technical qualification and financial qualification. State-run Philippine National Oil Co. or subsidiary PNOC-Exploration Corp. has the option to take a 10% interest in service contracts with one or more Filipino participants and up to 15% in service contracts with no Filipino participants. 

There are 29 active petroleum service contracts in the Philippines with Shell Philippine Exploration Corp., Total E&P, Otto Energy Ltd., PNOC Exploration Corp., Nido Petroleum ltd., The Philodrill Corp., Pitkin Petroleum Corp. and Galoc Production Co. as among the government’s operator-partners.

(Sources: Power Technology; Optimus Energy; Manila Standard)

Korean Firms Propose Energy Projects Worth USD 4.4 Billion Investment In The Philippines

ENERGY - Philippines
June 2018

During the Philippines-Korea Business Forum held in June, four Korean companies submitted letters of intent (LOI) to invest in various energy projects in the country to the Department of Energy (DOE).

The four Korean firms, from which the total investment is estimated to reach USD 4.4 billion are SK Engineering & Construction, Sy Enc, BKS Energy Industry and SK E&S. Below are the companies' project interests in the Philippines:

  • SK Engineering & Construction proposed to build two 600 MW coal-fired power plants in the province of Quezon. SK E&C's consortium would build the two power plants and a partner would operates the plants, selling electricity to a Philippine company for 25 years. The project is estimated to be worth USD 2 billion and is expected to generate 3,000 jobs per year during construction and 600 per year once operational. The plants will use ultra supercritical technology, enhancing power generation efficiency by around 15% and reducing emissions. The Philippines government is going to conduct an environmental impact assessment of the plants.
  • The next biggest investment was from SK E&S, which proposed to build a USD 1.6 billion liquefied natural gas (LNG) terminal with a capacity of up to five million tonnes a year and several LNG power plants of more than 600MW. Other infrastructure to be built under the project includes a 150km-long pipeline connecting the terminal and power plants in Luzon Island in the north of the Philippines.SK E&S has signed a letter of intent (LoI) with the Philippines Department of Energy for the same. The project is anticipated to generate 2,200 jobs during construction. 
  • BKS Energy submitted a proposal for investing USD 500 million into solar power generation plant, which is expected to generate 1,000 jobs per year.
  • Lastly, Sy Enc is interested in building a wind power generation project. The estimated investment for this project is USD 255 million and it is expected to generate 10,000 jobs.

(Sources: Power Technology, Optimus Energy)

Ayala To Sell Stake In Coal Assets And Boost Renewables Business

ENERGY - Philippines
May 2018

Ayala Corporation’s energy company, AC Energy Inc. announced that it could sell up to 50% stake in in its coal-fired units to boost its renewable business in South East Asia.

The energy company is currently in talks with potential partners and has indicated that the sale may reach USD 1 billion. AC Energy aims to expand its total energy capacity to 5,000 megawatts (MW) in 2025 from the current 1,600 MW, in which 80% of the assets are thermal, while renewable energy sources account for 20%. 

The company is keeping its radar open to any opportunities in South East Asia while also continuing to invest in the Philippines. After the company’s acquisition of Salak and Darajat geothermal assets in Indonesia in 2017, the company is further building its renewable portfolio. It developed a 75 megawatt wind project in Sidrap, Indonesia. The US$ 150-million Sidrap Project started commercial operations on March 28, 2018. The Sidrap Project is the first greenfield offshore investment of AC Energy. 

AC Energy, in partnership with BIM Group of Vietnam, is jointly developing over 300 megawatts of solar power projects in Ninh Thuan province, Vietnam. The initial 30 megawatts of the solar project broke ground, with investment for this phase expected to reach 800 billion VND (USD 35 million).

In January this year, Ayala announced the creation of a new holding company, AC Renewables Inc. and the transfer of renewable assets to AC Renewables Inc. The existing Thermal Holdings company was renamed to ACE Thermal Inc., while AC Energy was retained as the umbrella brand. This restructuring was done as the company recognized that renewables and conventional power are two distinct businesses that attract different types of investors. 

(Sources: AC Energy, Reuters, EnergyWorld)

Ayala Unit Putting Up Solar Panel Factory

ENERGY - Philippines
April 2018

AC Industrials, a subsidiary of Ayala Corp, which acquired a majority stake in a California-based manufacturer of solar technology, Merlin Solar, is building a production facility of solar panels in the Philippines.

The manufacturing facility will be located in the Integrated Micro-Electronics Inc.’s (IMI) hub in Laguna Technopark —a subsidiary of AC Industrials. According to Merlin's President, the solar panels that will be produced are unique and far different from the standard solar panels installed on ground or rooftops. It will be highly flexible and very light panels designed for transportation and IoT (Internet of Things) applications. The company is also looking at the potential of its products in aerospace, military and portable type of applications. Merlin plans to export these products to the wider South East Asian region and to select countries in Asia, particularly to Japan.

The acquisition of Merlin is in line with Ayala Group’s direction to increase its global and local presence in the industrial technology sector by capitalizing from opportunities in the emerging and disruptive technology space.

(Sources: The Philippine Daily Inquirer; BusinessWorld)

Solar Philippines Completes South East Asia’s Largest Solar-Battery Micro-Grid

ENERGY - Philippines
March 2018

Solar Philippines, a local developer and manufacturer of solar panels, has finished the installation of the largest solar and battery storage-based micro-grid in the Philippines and in the South East Asian region. It includes 2 megawatts (MW) of solar panels, 2 megawatt hours (MWh) of batteries and 2 MW of diesel for back-up. The micro-grid is designed to supply power 24 hours a day throughout the year, and is located in Paluan, Occidental Mindoro.

The project uses panels from the Solar Philippines factory, and is also the first micro-grid in Asia to feature Powerpacks from Tesla, a leading manufacturer of batteries and electric vehicles.

This project is part of an initiative by Solar Philippines to bring cheaper, more reliable power to areas poorly served by utilities, in support of the Duterte administration’s aim to end energy poverty by 2022. With the commercial operation of the solar-power micro-grid, the town can now enjoy electricity at 50% lower than the electricity from National Power Corporation (NPC) power plants.

(Sources: PV Tech; GMA News Network; Malaya Business Insight)

DOE Endorses 29 Projects For Commercial Operations

ENERGY - Philippines
February 2018

The Department of Energy (DOE) welcomed 2018 by endorsing 29 energy projects with a cumulated capacity of over 1,500 megawatts (MW), as it continues its push in pursuing and achieving its mandate to provide reliable, stable, and sustainable energy for the Filipinos. . According to DOE’s data, the breakdown of 29 projects by source are as follows:

  • 15 Renewable Energy Plants (7 Solar, 5 Hydro Power and 3 Biomass)
  • 10 Diesel-Fired Plants
  • 3 Power Barges
  • 1 Coal-Fired Plant

Some of the renewable projects included the 100-MW solar farm in Tanauan, Batangas of Solar Philippines Tanauan Corp., 50-MW solar plant in San Miguel, Bulacan of Power Source First Bulacan Solar Inc. and the 100-MW solar farm in Concepcion, Tarlac of Solar Philippines Tarlac Corp. (SPTC). The coal-fired power plant of Orion Pacific Prime Energy Inc. has the biggest capacity with 1,000 MW.

(Sources: Department of Energy; The Philippine Star)

Malaya Thermal Plant To Be Privatized

ENERGY - Philippines
January 2018

The 650 MW  Malaya Thermal Power Plant in Rizal is expected to be privatized now that the country's natural gas policy has been issued. According to the Philippine Department of Energy (DOE), the Power Sector Assets and Liabilities Management Corp. can proceed to privatize the Malaya plant, which should be converted into a LNG or coal plant by the winning bidder.

The Philippines has recently issued rules and regulations that govern the downstream natural gas industry to develop a market and gain energy security and sustainability. With the natural gas policy, the country now has a framework for the gas supply and will be secured for the Malaya plant and other upcoming LNG projects. The Malaya Thermal plant is currently designated as a must-run unit (MRU) by the DOE to address supply deficiency when running power plants in the grid shut down or become or unavailable. Running on diesel, the plant will operate as an MRU until the DOE finalizes its privatization schedule.

(Sources: Department of Energy)

AC Energy Partners With UK Firm To Power Tawi-Tawi University

ENERGY - Philippines
December 2017

Ayala-owned AC Energy Holdings Inc. and UK-based Kennedy Renewable + Technology Corp. has partnered to provide solar power panels for Mindanao State University (MSU) in Tawi-Tawi. Solar panels, hybrid inverters and batteries were installed to seven campus buildings of the only university in the province that provides 141-kilowatt-hour capacity. The solar power technology installation also has an energy-storage capability that allows it to store the excess energy captured to be used at a later time. The university is still connected to the grid of local power provider, enabling it to minimize if not totally avoid the effect of disruptions and lowering the cost of electricity. Kennedy acted as the contractor for the project, doing project development and engineering, procurement and construction (EPC) while AC Energy provided technical and financial support.

The Ayala power investment firm is looking to expand some of its existing renewable energy projects when the Renewable Portfolio Standards (RPS) and the Green Energy Option (GEO) - mechanisms under the Renewable Energy (RE) Act of 2008 - are implemented.

AC Energy is also expanding its footprint in the South East Asian region. Together with UPC Renewables Indonesia Ltd., it is developing a 75-MW wind farm project in South Sulawesi, Indonesia. It also has a 20% stake in Star Energy (Salak-Darajat) B.V., which acquired Chevron’s geothermal operations in Indonesia.

(Sources: The Philippine Star; Business Mirror)

Philippines, Russia Ink Technical Assistance Cooperation On Nuclear

ENERGY - Philippines
November 2017

The Department of Energy (DOE) and the Russian Federation State Atomic Energy Corporation (Rosatom) agreed on a nuclear cooperation program under a Memorandum of Cooperation (MOC) signed on 13 November 2017 on the sidelines of the 12th East Asia Summit held in Manila. The undertakings in the MOC would support the Philippines in coming up with a national position and the crafting of a nuclear energy policy that may lead to a nuclear energy program.

The Philippines and Russian Federation will cooperate in several areas under the agreement:

  • nuclear infrastructure studies towards national energy policy development and nuclear energy program implementation in the Philippines;
  • audit and assessment of the Bataan Nuclear Power Plant’s (BNPP) technical condition, including the option of its rehabilitation;
  • feasibility studies on construction in the Philippines of small modular nuclear power plants, onshore or offshore, but not limited to analysis of technical, commercial, financial and legal aspects.

The two Parties may also carry out similar studies on nuclear power plants in general as may be deemed necessary and consistent with national energy development plans and policies of the Philippines. The cooperation will be implemented in the form of joint working groups that will undertake specific projects and tasks; exchange of experts; workshops; training and education of personnel; and sharing of technical information. The MOC will run for five years and is renewable for the same period unless one Party notifies the other in writing through diplomatic channels of its intention to suspend or terminate the same.

The Philippines and the Russian Federation are members of the International Atomic Energy Agency (IAEA) and are parties to the Treaty on the Non-Proliferation of Nuclear Weapons of July 1, 1968. 

(Source: Department of Energy )

Philippines To Accelerate The Deployment Of Mini-grids With Renewables

ENERGY - Philippines
October 2017

The Philippine government plans to accelerate the deployment of mini-grids using renewable energy in the country to help achieve its goal of total electrification by 2022. In a country of more than 7,600 islands, the provision of adequate, reliable, clean and modern energy has long been a challenge, particularly in remote and isolated areas. With the dramatic decline in costs, renewable energy technologies have become a feasible and cost-effective option, not only to meet the basic need for electricity, but more profoundly, as a sustainable solution to support productive uses through mini-grid systems.

In a report by the International Renewable Energy Agency (IRENA), it noted that within those areas identified for off-grid electrification, mini-grids were better suited to denser communities, while small standalone technologies – such as PV solar home systems – were preferred for highly dispersed households. The report recommended carrying out comprehensive and strategic planning for total electrification, using both on and off-grid applications, particularly with renewable energy. It also recommended the use of energy storang and called for the establishment of clear policies for mini-grids and the revision of current regulation for mini-grids to remove existing barriers and improve tariff determination procedures. Greater support for project development and execution is also necessary to facilitate financing.

(Source: PVTech)

Ayala Corporation Ventures In Green Vehicle Manufacturing

ENERGY - Philippines
October 2017

Ayala Corporation is investing in the automobile sector by entering the market through manufacturing of green electronic vehicles. The conglomerate, one among the biggest and oldest in the country, has said that it is planning to invest USD 150 million in automobile and motorcycle manufacturing as it sees a need for the green vehicles in the country. Through its AC Industrial Technology Holdings company, its subsidiary unit in the automotive sector, Ayala Corporation is under negotiations with foreign potential partners for the electric car venture.

Green and electric vehicles are becoming the viable options to promote environment-friendly vehicles as this do not produce harmful emissions and are powered by renewable energy compared to combustion engine-powered vehicles that consume fuel. Most developed countries have adopted the technology, however, the demand and opportunity in South East Asia have yet to catch up. 

Ayala Corporation has recently acquired a foreign automotive and allied company, German auto parts supplier MT Misslbeck Technologies, and became a partner with Austrian company KTM-AG in manufacturing motorcycles to be marketed in China and countries Southeast Asia. The conglomerate has also made local and foreign investments in banking, telecommunications, real estate and water distribution. 

(Sources: Asian Nikkei; AutoIndustriya)

Hydropower Plant To Be Built In Ifugao Town

ENERGY - Philippines
September 2017

Chinese company Hydrocore Corporation is scheduled to build a hydropower plant in the rural town of Sitio Bayucan in Ifugao province, as the project's groundbreaking ceremony occurred in August. The power plant is expected to be operational in 2019 to help generate electricity in Luzon. Hydrocore Corporation, a subsidiary of Xidian Holdings Philippines Corpopration and the main contractor of the project, partners and coopoerates with the provincial government for the hydropower plant development, and assures that the completion of the project and the personnel to facilitate will abide by the existing Philippine construction laws and regulations.

Aside from the hydropower plant project in Ifugao, Hydrocore Corporation has also developed renewable energy projects in other Philippine provinces, such as in Baguio, Isabela, Benguet, Palawan, Samar and provinces in  Mindanao.

(Sources: Sunstar; ResearchViews)

Rural Households In The Philippines To Get Electricity Supply

ENERGY - Philippines
September 2017

Households in rural areas in the Philippines will soon get stable electricity in their houses as the Department of Energy has signed Memorandum of Agreements worth PHP 131 million (USD 2.6 billion) for the installation of prepaid photovoltaic mainstreaming systems that will benefit over 5,000 households. The project is to push through under Busuanga Island Electric Cooperative (BISELCO), Quezon II Electric Cooperative (QUEZELCO II) and Bohol II Electric Cooperative (BOHECO II).

The breakdown of the DOE-funded electrification program for 2017 is as follows:

• BISELCO: A total of 3,711 households residing in barangays Banuang Daan, Borac, Bintuan, Buenavista, Bulalacao, Cabugao, Lajala, Marcilla, Decabobo, Decalachao, Guadalupe, Malawig, San Jose, San Nicolas and Tara in Coron; Sto. Nino, Old Busuanga, New Busuanga, Quezon, Buluang and Panlaitan in Busuanga; and Culion Island.

• BOHECO II: A total of 530 households living in barangays Cataban in Talibon; West Hingotanan, East Hingotanan, Bilangbilangan Dako and Bilangbilangan Diyot in Bien-Unido.

• QUEZELCO II: A total of 1,333 households located in the barangays Aluyon in Burdeos; Canaway, Pagsangahan, Lumutan and Umiray in General Nakar; and Maunlad in Real.

The DOE electrification program entails two solar home systems (SHS) Services - the SHS Service 1 with 30 watt peak and the SHS Service 2 with 50 watt peak. These systems could power lighting systems, charge mobile phones and run small television sets.

Based on the Energy Regulatory Commission solar home system (SHS) electricity service rate for electric cooperatives, the beneficiaries will pay between P180.00 - P222.00 per month or P5.00-P8.00 per day, depending on the solar home system and zoning service or distance from the electric cooperative headquarters.

(Source: Department of Energy)

Toshiba Signs MoU To Prolong Sem-Calaca Power Plant Life

ENERGY - Philippines
August 2017

This month, Toshiba Corporation announced that it has concluded an MOU with Sem-Calaca Power Corporation (a DMCI Holdings group company), on a partnership to investigate the deployment of total asset management including plant optimization, predictive monitoring with IoT solutions and extending the operating life of the Calaca Thermal Power Plant in Luzon, Republic of the Philippines. The scope of MOU covers application of IoT to predictive monitoring of the plant’sequipment to detect emerging problems, securing a longer operating life, and staff training to enhance operation and management capabilities, including repair and maintenance. Sem-Calaca operates the four-unit, 900MW Calaca Thermal Power Plant in southern Luzon. Toshiba delivered the steam turbine, generator and related equipment for Unit 1 in 1984, and has subsequently provided technical support for the plant.

The Philippines is seeing fast growing demand for electricity. In 2016, temperature increases caused by El Nino pushed up year-on-year demand by 10%. Coal-fired power plants accounts for 36.5% of total power generation and for almost half the capacity increase in 2016. In these circumstances, improving  plant generating efficiency and staff capabilities in operation and maintenance capabilities are essential. Many of the country's aging thermal power plants are in need of rehabilitation to extend their economic life.

(Source: Toshiba Philippines)

Laguna De Bay To House Pumped Storage Power Plants

ENERGY - Philippines
July 2017

The Department of Energy has received six proposals from different companies to develop big hydro power projects harnessing Laguna Lake. According to the agency, Laguna Lake, which is the country’s largest freshwater lake, could host five projects with a total capacity of 2,000 MW. Companies that have expressed interest in the projects include Phinma Energy Corporation and City Power Inc. The six proposals would total to an estimated combined 3,000 MW if all projects materialized; however, the final storage capacity is yet to be known as feasibility studies are still ongoing.

(Sources: The Philippine Star, BusinessWorld)

Andritz Turbines Runs Hydropower Plants In The Philippines

ENERGY - Philippines
June 2017

Hedcor Inc, the hydropower subsidiary of Aboitiz Power Corp, will start commissioning the 69-megawatt (MW) Manolo Fortich hydropower plant in Bukidnon in the fourth quarter of the year. The company has tapped Andritz Hydro—a global supplier of plants, equipment, and services for hydropower station based in Graz, Austria—to provide and install turbines for the project. Andritz Hydro is on its half way of completing the installation of four units Francis-type turbine for the 25.4-MW Manolo Fortich Hydropower Plant 2 of Hedcor. Andritz was awarded a EUR 15 million contract to complete the electromechanical works of Hedcor’s newest two power plants.

Hedcor’s hydro project is enough to provide clean energy to approximately 70,000 households in the island of Mindanao. Aside from installing the electromechanical equipment, Andritz will ensure quality control of the entire hydro system such as analysis, target points, alignment, and ensures the hydro plant will soon generate power, efficiently.

Andritz has been Hedcor’s supplier for its other plants such as the 3.8-MW Irisan 1 hydropower project (HPP) in Tuba, Benguet; the 6.6-MW Tudaya HPP in Sta. Cruz, Davao del Sur; and the 14-MW Sabangan HPP in Barangay Namatec Sabangan, Mountain Province. Hedcor currently manages and operates 22 hydropower plants and supplies 185 MW of clean and renewable energy to the country.

(Sources: The Philippines Star, EDGE Davao)

San Miguel To Build USD 20 Billion Refinery Complex

ENERGY - Philippines
June 2017

Philippine conglomerate San Miguel Corp announced it is building an integrated oil refinery and petrochemical plant worth between USD 15 billion and USD 20 billion in the southern part of the country. The company is looking to put up a totally new oil refinery which will produce up to 250,000 barrels a day for the Philippines.

San Miguel already operates the Petron Bataan refinery, the country’s most advanced integrated oil refining and petrochemicals complex, producing a full range of world-class petroleum products including gasoline, LPG, diesel, jet fuel, kerosene, and petrochemical feedstocks - benzene, toluene, mixed xylene and propylene. This refinery is located north of Manila.

The plan is in response to the strong demand for petrochemical products in the country. San Miguel is already in talks with two foreign partners for this project.

(Sources: The Philippines Star, The Manila Times, BusinessMirror)

Government Eyeing Hydropower Development On Irrigation Systems

ENERGY - Philippines
May 2017

The National Irrigation Administration (NIA) in the Philippines is moving forward with the development of hydropower projects on its existing irrigation systems and future irrigation projects. NIA has signed a memorandum of agreement with Nascent Technologies Corp for the development and construction of the 400-kW Barit Irrigation Discharge Hydroelectric power plant. This plant is expected to cost PHP 27.6 million.

This is part of the continuous effort of the NIA to provide more renewable energy sources that will not just only boost NIA's income but also will contribute to the provision of electricity in far-flung communities in the country.

(Sources: International Water Power & Dam Construction, Hydroworld.com)

Nestle Taps Geothermal Energy In The Philippines

ENERGY - Philippines
April 2017

Nestlé Philippines Inc has tapped Aboitiz Power Corp to supply renewable energy (RE) to its manufacturing facility in Lipa, Batangas. Under the partnership, Aboitiz will source renewable energy from the MakBan Geothermal Power Plant of its subsidiary, AP Renewables Inc. (APRI).

AboitizPower and its partners have a net sellable capacity of more than 1,200 megawatts (MW) from its renewable energy portfolio of geothermal, hydro and solar power plants located all over the country. It is continuously building up its portfolio through ongoing projects, like the 69-MW Manolo Fortich run-of-river hydro project in Bukidnon and the 8-MW Maris Canal hydro project in Isabela. AboitizPower is also currently commissioning its first biomass-power plant through its subsidiary Aseagas in Batangas.

(Source: Department of Energy, The Philippine Star)

AG&P Signs Deal With Air Liquide

ENERGY - Philippines
March 2017

Philippine liquefied natural gas solutions provider Atlantic, Gulf, and Pacific Co (AG&P) announced that it will partner with French Air Liquide Group to develop small-scale LNG infrastructure for distribution across Asia. AG&P will integrate the technologies offered by Air Liquide with its expertise in planning, designing engineering, financing and operating LNG infrastructure modules to build technologically-advanced blocks that can plug into any part of the LNG supply chain.

The deal will enable the integration of downstream LNG infrastructure, including small scale regasification terminals, distribution hubs, truck loading stations and boil-off gas handling systems into AG&P’s LNG supply network for rapid delivery of tolled gas to last-mile customers. AG&P and Air Liquide will begin developing standardized downstream LNG modules that optimize costs and shorten delivery time. The deal will also cover innovative Boil-off Gas (BOG) management systems eliminating the need for investment in BOG compressors, while ensuring that no gas is vented or flared, bringing environmental and economic benefits to the customer.

The demand for LNG continues to grow worldwide as countries seek to replace oil and heavy fuel oil with LNG as a cleaner and cheaper fuel for power generation, shipping, ground transport and industrial use. Both companies aim to pioneer the development of the much-needed LNG infrastructure.

(Sources: AG&P, The Philippine Star)

Agreement Signed To Ensure Reliable Energy In Ecozones

ENERGY - Philippines
February 2017

The Department of Energy (DOE) and the Philippine Economic Zone Authority have signed a memorandum of understanding to accelerate the development of regional economic zones or ecozones in the country. Under the partnership, DOE will develop energy policies to facilitate the reduction of the cost of doing business in the country, including the ecozones. Energy efficiency programs, like the adoption of the Energy Management Systems (ISO 50001), will be given importance to help the locator companies to be more efficient in their use of energy resources. This will result in lower power costs to sustain the companies’ competitiveness.

The DOE also underscored the importance of policies that would streamline the permitting processes for energy projects, to ensure stable and reliable supply of energy to drive the economic activities in the ecozones. Currently, Philippine electricity rate—particularly that of Manila Electric Co. (Meralco)—is the third highest in Asia, fourth in Asia Pacific and 16th worldwide in 2016, based on a report dome by Australia-based International Energy Consultants (IEC).

(Source: The Philippine Star)

PTT Opens Largest Service Station In Philippines

ENERGY - Philippines
January 2017

Thailand’s largest petroleum company PTT, Public Co. Ltd. has opened its largest service station in the Philippines, located along the Subic-Clark-Tarlac Expressway (SCTEX) in Concepcion, Tarlac. The Thai oil firm’s PTT-SCTEX currently has an eight-pump gasoline station, a convenience store, a “five-star” public toilet named Restroom 20 and the company’s signature coffee shop.

PTT Philippines presently has 111 stations operating mostly in Luzon and Cebu. This year, the oil firm is looking to open 20 more stations, the bulk of which is still targeted in Luzon. The company is also undergoing studies for the possibility of penetrating the Mindanao market.

PTT Public Co. Ltd has chosen the Philippines as a key growth area for its aggressive retail expansion in the ASEAN region, setting aside PHP 1.82 billion (USD 36.4 million) for research alone to find other viable varieties of gasoline and lubricants to develop. The company believes that the country needs more energy alternatives as the economy improves and its power demand rises.

(Sources: The Manila Times, Business World)

Citicore Partners With Huawei To Expand Solar Business

ENERGY - Philippines
December 2016

Renewable energy firm Citicore Power Inc. has struck a deal with China-based power and telecommunications technology provider Huawei Technologies Co. Ltd. to put up around 500 megawatts (MW) of solar power projects outside the Philippines.

Under the partnership, Huawei will provide project design support and inverter maintenance support for Citicore Power including remote, hardware and solution support. It will also complete or obtain various product tests, network admission, and technology certification for the products.

The deal is in line with Citicore’s strategy to develop and construct solar projects with a total capacity of 500 MW  by 2020 in overseas markets particularly Japan, Malaysia, Indonesia, Thailand, Vietnam, and Myanmar. The company plans to install 1,000 MW of capacity using a range of renewable energy sources, including solar, biomass, wind and hydropower.

(Sources: The Philippine Star, BusinessWorld)