Meralco and Chubu Electric Propose 1,750-Megawatt, LNG-Fired Plant in Quezon

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Written by Richard Finlayson, Senior International Editor for Industrial Info Resources (Sugar Land, Texas)--Manila Electric Company (PHP:MER) (Meralco) (Manila, Philippines) is conducting a grid impact study (GIS) with Chubu Electric Power Company Incorporated (TYO:9502) (Chuden) (Nagoya, Japan) for a proposed liquefied natural gas (LNG)-fired plant with a generating capacity between 1,200 and 1,750 megawatts (MW). The plant would be sited in Atimonan, Quezon province, to the south of Manila, to meet the growth in demand in the region.

The GIS is required to determine if power generated from the plant can be absorbed by the grid and if the existing transmission lines are enough to transmit the electricity from the power plant to the substations. The GIS will be executed by the National Grid Corporation of the Philippines (NGCP). The Department of Energy has issued a clearance to NGCP for the study.

Meralco president Oscar Reyes said that Meralco PowerGen was considering a number of power plant projects, which will include clean coal and natural gas feed and renewable energy power plants in joint ventures with partners who have established track records with the company.

"In the case of LNG, we are in early stage discussions with select potential partners and we are undertaking feasibility studies with them involving alternative sites in South Luzon. That's the case with Chubu Electric with whom Meralco PowerGen has a feasibility study," Reyes said. Meraclo is also developing the proposed 600-MW, coal-fired project in the Subic free port zone with Aboitiz Power Corporation (OTC:ABZPF) (Manila) and Taiwan Cogeneration (TAIWAN:8926). The $1.28 billion project will be executed through Redondo Peninsula Energy Incorporated.

Reyes said that the aero-derivative powered 300-MW peaking plant at Calamba, Laguna, has been put on hold. The project is vulnerable to the volatility in diesel product fuel feeds and could take an investment of anything between $150 million and $300 million.

Meralco is looking to reenter the power generation sector with a portfolio of 2,500 MW, motivated by the fluctuation in generation charges to consumers caused by the gap between supply and demand and the sporadic congestion in the transmission system.

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