Meralco PowerGen Corp. (MGen), the power generating unit of Manila Electric Co., is seeking a certificate of exemption from the Department of Energy (DOE) for the 1,200-megawatt (MW) Atimonan One Energy Inc. (AIE) from the coal ban.
“Initially, Atimonan was coal, and we tried to repurpose it as gas, right? But it’s in the committed list. So, it’s outside of the moratorium. We have the ECC [environmental compliance certificate] for 1,200-megawatt ultra super critical coal,” MGen president Emmanuel Rubio said.
“We’re trying to get a DOE certification that is really outside the moratorium to start the discussions on SIS [system impact study], looking for an engineering study. That’s where we are,” Rubio said.
Rubio said they were seeking clarification as the project has undergone revisions from coal to gas to coal.
A1E earlier proposed a 1,200-MW ultra-supercritical coal-fired power plant of high efficiency-low emission in the project site which did not push through due to lack of power supply agreement and opposition from environmental groups.
AIE decided to put up a 2,400-MW natural gas-fired combined cycle gas turbine power plant and liquefied natural gas terminal with floating storage unit in Atimonan costing P175 billion.
“Right now, it is licensed, permitted, authorized to do a coal plant. Ultra super critical. We don’t know yet whether we stay with coal or we switch it to natural gas. The inclination is to stay with coal. Because if it’s gas, we have to put up the terminal,” MGen chairman Manuel Pangilinan said.
“And we probably should not stay at 1,200 MW, right? Probably increase it. And I don’t know whether that’s the right place to put up a gas complex. But the inclination is to stay with coal,” Pangilinan said.
MGen, together with Therma NatGas Power Inc. (TNGP) of the Aboitiz Group, is also investing in LNG assets.
The parties announced in March their plan to acquire interest in Chromite Gas Holdings (CGHI) that would pave the way for their investment in LNG assets valued at $3.3 billion.
MGen will acquire a 60-percent interest while TNGP will get the balance of 40 percent in CGHI.
CGHI intends to invest in two gas-fired power plants owned by San Miguel Global Power Holdings Corp. (SMGP), including the 1,278-MW Ilijan power plant and a new 1,320-MW combined cycle power facility that is under construction.
CGHI intends to acquire a 67-percent equity interest in the LNG assets while SMGP will own the remaining 33 percent. The transaction is pending the approval by the Philippine Competition Commission.
