It's obvious the coal plant next door want nothing to do with an...

It's obvious the coal plant next door want nothing to do with an LNG providing power plant!!!

Quezon LNG project remains dormant amid power crisis

• August 8, 2016
• Written by GEMI FORMARAN
• Published in Provincial
• Read: 29

PAGBILAO, Quezon -- The completion of a Liquified Natural Gas (LNG) hub terminal and power plant facilities in this coastal town that can help the country’s blooming power crisis remains unproductive due to delay of its formal operation, and feared to become a “white elephant” if not immediately addressed.
The said LNG project is the first of its kind in the Philippines, according to former Quezon Gov. Eduardo Rodriguez, the country manager of Energy World Corp. (EWC), the power project proponent.

“It is very ironic that while the country is now suffering from energy problem that causes unexpected brownouts, a power source is being deprived of its right to take off and supply power,” said Rodriguez.

He disclosed that funding requirement with local banks and transmission arrangement with various government agencies has been the main cause of delay in the formal operation of the plant facilities of the power plant project.

The project consists of the development, construction and operation of a LNG Hub Terminal and Regasification Facility in Pagbilao Grande Island, here.

The delay of the power project operation prompted Rodriguez to write a letter addressed to Department of Energy Sec. Alfonso Cusi. In his letter dated August 3, the former governor emphasized that the main issue preventing the drawdown of funds with EWC’s lenders is the transmission lines, particularly the right of way owned by Power Sector Asset and Liabilities Management Corp. (PSALM).

The EWC’s timetable for commissioning for the first gas turbine with a capacity of 200MW is six months after the drawdown of funds under its loan facility with the three lending banks: Development Bank of the Phils., Land Bank and Asian Bank.

Rodriguez said that EWC’s original plan for its transmission line arrangement involved the construction of 400 meters transmission line to cut-in to an existing 230KV Pagbilao transmission line owned by the National Grid Corp. of the Phil (NGCP).

He said that NGCP has advised that Team Energy Corp., which operates the nearby 730MW coal-fired power plant, is unwilling to allow EWC to connect into the 230KV line as it may interfere or disrupt the coal-fired power plant’s ability to export power from their plant.

Rodriguez mentioned the fact that the NGCP and the National Power Corp. of the Phil. have noted that the transmission line is capable of taking up to 2400MW with minor technical modifications.

He told newsmen that in a meeting in October last year attended by DOE, NGCP, NPC, Transco, Team Energy and EWC, it has been agreed in principle that EWC would utilize and upgrade an existing 69KV line, later learned to be owned by PSALM, to transport its power and which the latter has agreed.

Rodriguez said the bank lenders have requested that EWC obtain further confirmation from PSALM on the right of way and EWC’s ability to utilize this right of way and from NGCP clarifying details regarding its connection agreement.

He asked assistance from DOE Sec. Cusi to expedite the transmission arrangements to enable the EWC to draw down funds for the commissioning of the project.

Graham Elliot, Energy World International (EWI) director, and Brian Allen, EWC executive director, have expressed hopes that the national government agencies in charge of the power needs of the country would come around and see the reality of a better option provided by an LNG-fired power plant.

Elliot and Allen stressed to a group of local newsmen who visited the project site that natural gas is much cleaner, safer and environment-friendly.

Using natural gas instead of coal in generating electric power, the EWC has constructed a 65-meter concrete storage tank with a capacity of 130,000 cubic meters, a jetty and marine facilities for berthing, unloading and reloading LNG ships, a regasification facility to convert LNG back to natural gas and a 650 MW combined cycle power station all located in Bgy. Ibabang Polo, here.