EWC 2015 gas to power/Philippines, page-4

Hi Skeoch,

Good to see that you take an (albeit negative) interest in a company you do not hold any stock.

As far as your comments re: Sengkang lng price are concerned, I would welcome your informed insight as to the actual price EWC will negotiate with eg. Pertamina and others. Just for the record, when making such calculations, it is worth remembering that EWC’s business approach is to enter into medium and short term contracts, sell on the spot market and provide lng to the Indonesian domestic market as well as to other countries (all these factors impact on price).

As far as the Pagbilao power plant is concerned, your reference to an August 2014 report is well and truly outdated. Since then, further progress and negotiations (also reported in the Philippines media) have indicated that this project is well and truly an essential part of the Government’s energy strategy. EWC’s 2014 AR also refers to the strong support it is getting from the Philippines DOE and Government:

“….we have already shipped 2 x 200 MW gas turbines manufactured by Siemens from USA to Pagbilao. These units will be arriving in the Philippines in September/October 2014. Under this accelerated program we hope to have the first 200 MW ready for generation by early next year with the second 200 MW to come online shortly thereafter. By achieving this program we will meet the DOE’s request to bring into commercial operation an additional 400 MW of power capacity to the Luzon grid by summer of 2015. Our planning is for the additional 200/250 MW steam turbine package to be phased into this development by year end 2015 /early 2016. We are therefore receiving strong support and encouragement from the DOE and other Philippine government departments in order to meet the Government’s required timeframe for addressing the current shortfall in Luzon’s power generation capacity. Greening with 15,000 trees for the Pagbilao site in the Philippines………Our power plant will be the first of its kind in the Philippines and as such we are working closely with the Department of Energy to help them realize their long-term goals of economical, clean and green power generation and gas-based industries.” (pages 48/49,50)