Power Sector Assets and Liabilities Management Corp. awarded the contract to supply and deliver industrial fuel oil this year to the 650-megawatt Malaya Thermal Power Plant in to Pilipinas Shell Petroleum Corp.
PSALM earlier bid out the contract for the supply of industrial fuel oil to Malaya with an approved budget of P686.412 million.
PSALM officer-in-charge Lourdes Alzona confirmed Shell, the country’s second largest oil company after Petron Corp., won the auction. Shell owns a refinery in Batangas with a capacity of 110,000 barrels per day.
PSALM, which manages the assets and liabilities of National Power Corp., owns the Malaya facility.
“The notice of award is already approved for issuance,” Alzona said.
The Malaya plant is designated as a must-run unit when power supply is tight, although it is set to be privatized on March 8, 2017.
The power plant will run on selected dates during the 20-day Malampaya gas project maintenance shutdown starting today.
PSALM issued the invitation to bid for the Malaya privatization last month when four bidders expressed interest.
The Malaya plant consists of a 300-MW unit with a once-through type boiler and a 350-MW unit fitted with a conventional boiler.