Energy World Corp. of Australia is pushing ahead with the construction of a liquefied natural gas terminal and a 650-megawatt power plant in Pagbilao, Quezon province despite delays.
Energy World officials disclosed to the Australian Securities Exchange construction at the site “continues at an impressive rate.”
“Generation site formation finished. The unloading jetty is substantially completed and unloading arms are installed,” Michael O’Neille, independent non-executive director and chairman of the audit committee of Energy World, said.
He said two units of LNG re-gasification had been installed and gas-fired turbine generators erected.
O’Neill said associated pipes, pumps, valves, controls of the Siemens power generator package were under way while support facilities were all in place as part of the project requirements.
He added the local community had been supportive of the project and that strict monitoring of all necessary environmental requirements was being carried out as called for.
“This is undoubtedly a significant stride forward in establishing a world class LNG hub terminal and power station to achieve the company’s goal of delivering an integrated clean energy supply chain providing power, LNG and natural gas to the Philippines,” O’Neill, who visited the Philippines last month, said.
Energy World had planned to complete the first 200-MW capacity and bring it to commercial operations during the dry months this year.
Energy World plans to phase in an additional 250-MW steam turbine package by the end 2015 or early 2016 to bring the total power plant capacity to 650 MW.
The directors of Energy World in March last year agreed on a mandate and term sheet with the Development Bank of the Philippines to finance the LNG facility.
Energy World earlier disclosed that the value of the project debt was equivalent to approximately US$550 million. DBP will partially underwrite the funding requirement and arrange a syndication among local lenders.
The mandate and term sheet with DBP were signed in Manila on February 28, 2014.
Standard Chartered Bank earlier was hired as financial advisor of the company and for the LNG project.
EWC Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
