Luzon told to curb energy use as work on LNG hub begins
Two gas power plants will undergo a planned shutdown this weekend as the energy titans gear up for the completion of the country’s first onshore liquefied natural gas (LNG) storage facility, according to the Department of Energy (DOE).
The agency said on Friday the scheduled downtime of South Premiere Power Corp. (SPPC) and Excellent Energy Resources Inc. (Eeri) was “necessary” to advance mechanical activities at Linseed Field Corp.’s (LFC) LNG terminal.
“[This is] a crucial step toward completing its first onshore LNG storage tank by the end of April this year,” the DOE said in a statement.
This, as Meralco PowerGen Corp. (MGen), Aboitiz Power Corp. and San Miguel Global Power Holdings (SMGP) ramp up the implementation of their $3.3-billion deal to build an integrated LNG facility in Batangas.
Under their agreement, MGen, the power generation arm of Manila Electric Co. (Meralco), and AboitizPower would jointly invest in SMGP’s 1,278-megawatt (MW) Ilijan gas-fired power plant and the new 1,320-MW facility, which is owned by Eeri.
They would then acquire LFC’s LNG terminal, which is envisioned to “process, handle and deliver the LNG requirements of the power plants of SPPC and Eeri.”
The financial close for the said pact was completed in January.
Given the temporary shutdown set from the morning of March 29 to early on March 31, the DOE has urged power consumers in Luzon to conserve energy.
The DOE said this was planned in coordination with the country’s grid operator, National Grid Corporation of the Philippines, “to coincide with lower system demand.”
Uptick in spot market
The Independent Electricity Market Operator of the Philippines, the operator of the Wholesale Electricity Spot Market, was not seeing any issuance of power supply alerts. However, the situation may trigger an uptick in spot market prices.
The agency likewise said it had received an assurance from power distributor Meralco that “supply reserves for the weekend are projected to be adequate.”
“Meralco will remain on high alert and is prepared to activate its Interruptible Load Program should the need arise,” it said.
The Pangilinan-led firm is the biggest power distributor in the Philippines, with its franchise area covering Metro Manila, Bulacan, Cavite, Rizal and select areas in Pampanga, Laguna, Batangas and Quezon.
The DOE also reminded consumers of the state weather bureau’s declaration of warmer days ahead with the end of the cool amihan season.
“Given these warm temperatures, the DOE is strongly encouraging all Luzon consumers to take part in energy conservation efforts throughout the weekend,” the agency said.
“Simple actions such as maximizing natural lighting and ventilation when possible, turning off lights and nonessential appliances when not in use, and setting air conditioners to 24 to 26 degrees Celsius can significantly contribute to reducing demand on the grid,” the DOE added.
