Manila Electric Co., the biggest retailer of electricity, is in talks with state-owned Philippine National Oil Co. to join the country’s planned liquefied natural gas industry, its top executive said over the weekend.
“We indicated to PNOC our interest in any developments PNOC is doing,” Meralco president Oscar Reyes told reporters.
The Energy Department has asked PNOC to develop the Philippines’ first integrated LNG terminal and turn it into a regional hub. The terminal may include a power plant with a capacity of 200 to 800 megawatts.
Energy Secretary Alfonso Cusi wants the LNG facility to break ground next year and completed by 2020 or 2021.
Meralco expressed interest to put up an LNG facility with potential partners several years ago. Reyes said the company had been looking at investing in LNG or gas-fired power facilities.
“It was never shelved, we always looked at it, based on prevailing competitiveness, then it’s back in the agenda,” Reyes said.
It’s clearly an option. In the end, I think what’s important (is) what will deliver long term, competitive and affordable prices to consumers,” he said.
Reyes said aside from LNG, the company was looking at piped gas or additional gas (supply) from the Malampaya field in northwest Palawan or from other sources.
“We are looking at moves, we have expressed our willingness and readiness to be part of the LNG. Either if there is more piped gas (from) Malampaya or other resources. Then probably the country should consider that potential because you may only have limited market for piped gas. LNG will shut out more piped gas, which is a natural resource,” Reyes said.
He said Meralco was prepared to provide the market for LNG or new gas sources, but “in terms of off-take, we will have to look at what’s the impact on overall generation mix and cost.”
Reyes, meanwhile, welcomed the appointment of former Public Works and Highways secretary Rogelio Singson as senior vice president of Meralco and and president and chief executive officer of Meralco PowerGen Corp., the power generation ujit of Meralco.
“Clearly, I’ve been double handling. He brings to the team really a wealth of experience, knowledge and relationships and knowledge of government,” he said.
He said Singson’s appointment would add value to Meralco and Meralco Powergen, especially now that the company was expanding its power generation facilities such as coal and solar.
Meralco through Meralco PowerGen was earlier in talks with First Gen Corp., Shell Group of Companies in the Philippines and Osaka Gas for an LNG facility.
Reyes earlier said the company had not firmed up any plans but stressed that “they are talking with everybody,” including First Gen and Shell for an LNG facility.
First Gen and Shell are both in advanced stage of their respective LNG terminal projects, which could be the country’s first.
The private sector is rushing to put up an LNG terminal in preparation for the eventual depletion of the Malampaya gas field by 2024.