DOE backs conversion of Bataan facility into natural gas power plant

The Department of Energy (DOE) is in favor of converting the 620-megawatt (MW) Limay combined cycle power plant in Bataan to one that will run on natural gas.

Energy Secretary Vicente S. Perez said all players directly or indirectly concerned with production and distribution of natural gas are encouraged to make a bid for the supply of natural gas that will be needed by the plant.

"My understanding is that they merely have to change the boiler meaning we can easily convert the fuel of the Limay power plant as it is already a combined cycle plant," Perez said. "I am urging all players to consider Limay as their foothold and toehold for the introduction of imported energy."

Alstom Philippines Inc. operates the power plant, one of the independent power producers (IPP) which supply energy to the National Power Corp. (Napocor).

Alstom Phils. had informed Napocor and the energy department that it plans to convert its energy source from bunker to natural gas.

"I will make Napocor’s selling rate lower by about P0.50 per kilowatthour (kWh), and it will save the government money," Gilles David, president of Alstrom Phils. said.

However, David admitted that they would have to source their natural gas externally. The only major source of natural gas locally is the Malampaya gas field in Palawan which has a contract to supply natural gas to three power plants in Batangas with a combined capacity of 2,000 MW. It has estimated reserves that could service more power plants for the next 20 years.

However, the problem is how to bring the gas from Tabangao, Batangas to Bataan. The only existing pipeline for the distribution of natural gas from Palawan is through the inland pipeline from Tabangao to the two power plants in Sta. Rita, Batangas and one power plant in Ilijan, Batangas.

There are no existing distribution systems inland or through the shipping lanes.

David claims that the only economical source for a converted Limay power plant is through importations from Indonesia or Malaysia. The two countries are among the leading producers and distributors of natural gas in Asia.

There are also proposals for the coal-fired Sucat power plant to be converted into a natural gas-fired plant. Likewise, there are also plans to establish an inland pipeline from Tabangao to Sucat, Metro Manila, and from Metro Manila to Bataan.

However, there are still in the proposal level and it could not be put in place in time for a converted Limay power plant.