Aboitiz Power Corp. secured a clearance from the Department of Energy to undertake a system impact study for Therma Subic Inc.’s planned 1,310-megawatt combined cycle power plant in Pagbilao, Quezon.
The DOE granted Therma Subic clearance to undertake the grid impact study for Pagbilao 4 and 5 CCGT power plant in Barangay Ibabang Polo.
Aboitiz Power president Emmanuel Rubio said liquefied natural gas continues to be an option to expand the company’s power portfolio.
Rubio said they were looking at putting up LNG plants in Pagbilao and Cebu.
“Yes, it’s an option in Cebu, [to be] delivered by 2026, 2027. That’s when Cebu will need new capacities. And then 2029 and 2030 which is in Pagbilao,” Rubio said.
“At the moment, we are exploring [LNG] together with our partner JERA. In Cebu, yes, we are conducting a feasibility study,” he said.
Aboitiz Power is studying the development of a 150-MW LNG power plant in Cebu, he said.
Aboitiz Power owns a stake in Pagbilao Energy Corp., through its joint venture with TeaM Energy. PEC operates Pagbilao Unit 3 also located in Ibabang Polo, Isla Grande, Quezon.
The coal-fired plant, inaugurated on May 31, 2018, generates a baseload power of 420 MW.
Aboitiz’s Therma Luzon Inc. also owns the 700=MW Pagbilao coal plant (Pagbilao 1 and 2) in the same area.
Aboitiz Power is optimizing its existing baseload facilities to meet critical market needs as baseload demand is still expected to increase in the coming years.
The company said Luzon would need an additional capacity of 600 MW annually and plans to fill some of these gaps with LNG-to-power projects unless a cleaner technology proves to be the more economical option.
“In addition, AboitizPower is currently exploring an LNG-to-power project as an alternative to a third unit of Therma Visayas,” it said.
Aboitiz Power, together with its partners, allotted P28 billion for 2022 capital expenditures for the development and construction of various solar power, hydropower, and battery energy storage systems and the continuous improvement of the reliability of baseload plants.