News Post
Philippines plans for 1,200-MW LNG fueled merchant electrical power hub
Dubai-based Lloyds Energy is partnering with Mitsubishi Corp Energy of Japan to put up a 1,200-megawatt liquefied natural gas merchant power plant.
It is not an LNG terminal. It is a power plant, a merchant power plant whose feedstock is LNG. Details of the proposed LNG merchant plant have yet to be firmed up. The master plan, timeline ans sechedule of work have yet to be submitted to the Philippines Departmen of Energy.
If and when submitted, Cusi said the Department of Energy (DOE) would assess the proposal before any permit is issued. “We have to await for Lloyds Energy to submit their master plan and their timeline and schedule of work so we can issue the permit, if it will meet the terms, the conditions required.”
Once permitted, the LNG merchant power plant can be put up in 18 to 24 months. Unlike conventional independent power projects, merchant plants do not have upfront, long-term power purchase agreements to cover their output. Lloyds’s LNG plans include partnership with state firm Philippine National Oil Co. (PNOC). Lloyds Energy earlier signed a memorandum of understanding with PNOC to explore ways to develop LNG facilities and natural gas power plants in Bataan and Batangas provinces.
“The country needs an LNG power plant and an oil depot. These steps will encourage also the private sector to consider these directions, just like what we did with the LNG hub,” PNOC President Reuben Lista said.
Cusi said Lloyds’s interest and that of Mitsubishi to invest in the country was reached during President Duterte’s working visit to Japan. In the past, the Japanese government, through the Japan International Cooperation Agency, expressed its interest in building an LNG power plant in the Philippines. The DOE had also invited Japanese investors to put up merchant power plants in the Philippines through the Ministry of Economy, Trade and industry.
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