AES Philippines, the local unit of AES Corp. of the US, may also bid for the Malampaya banked gas in northwest Palawan, its first natural gas project in the country.
“We started the process and are evaluating it, but no formal letter submitted,” said Neeraj Bhat, AES Philippines managing director when asked about the company’s interest in the Malampaya banked gas.
The Malampaya consortium composed of Shell Philippines Exploration B.V., Chevron Malampaya LLC and PNOC Exploration Corp. and state-owned Philippine National Oil Co. is jointly offering the banked gas, which can fuel a natural gas plant with a capacity of 400 megawatts.
The invitation to prospective investors for the banked gas earlier said Spex, Chevron, PNOC Exploration and PNOC began the process of jointly tendering their respective gas volume entitlements under service contract 38 in northwest Palawan.
The quantity of gas available is up to 227.995 petajoules and an average daily quantity of up to 78.1 terajoules per day, available for delivery as early as January 1, 2016 and up to February 23, 2024.
Spex, as lead contractor of the Malampaya gas-to-power project, has its own banked or stored gas in the Malampaya reservoir. The other banked gas, also stored in the Malampaya reservoir, is owned by the state-owned PNOC.
AES Philippines, through Masinloc Power Partners Co. Ltd., is preparing the 600-megawatt expansion program of the Masinloc coal plant after winning the bid to supply 105 MW to eight electric cooperatives.
Masinloc Power Partners was declared the lowest bidder in the joint competitive selection process to supply the base load power requirements of eight electric cooperatives from the Region 1 Electric Cooperatives Association and the Cordillera Administrative Region Electric Cooperative Association (collectively, the R1+CAR).
“This win establishes our expansion project as the most competitive new capacity in the country, and we are pleased to provide this benefit to the R1+CAR customers,” Bhat said earlier.
AES Philippines is the majority owner and operator of Masinloc Power Partners which owns the 600 MW Masinloc coal-fired power plant. Masinloc Power Partners is embarking on another 600-MW expansion in the same area.
AES, a Fortune 200 global power company with presence in 20 countries expect the transaction to close in the third quarter. AES recorded revenues of $16 billion in 2013.