Shell bags P14.3-B fuel supply contract

MANILA, Philippines - Pilipinas Shell Petroleum Corp. has bagged P14.3 billion worth of industrial fuel supply contracts for four power plants around the country, the Power Sector Assets and Liabilities Management Corp. (PSALM) said.

PSALM is the entity created by the Electric Power Industry Reform Act of 2001 to handle the privatization of the assets of state-owned National Power Corp. (Napocor) and to manage its liabilities.

In a notice, PSALM said Shell won the bidding to supply and deliver industrial fuel oil to the Naga Power Plant Complex worth P4.3 billion, Malaya Thermal Power Plant worth P3.97 billion; Western Mindanao Power Corp. worth P3.764 billion; and Southern Philippines Power Corp. worth P2.276 billion.

The supply contracts cover the four power plants’ respective fuel requirements for 2013, PSALM said.

The Naga complex in Cebu is composed of three thermal power plants that use a combination of diesel, Bunker C oil and coal as fuel.

These power plants are: the 50-megawatt coal-fired Cebu Thermal Power Plant 1, the 56.8-MW Cebu Thermal Power Plant 2 and the 39-MW Cebu Diesel Power Plant 1.

The Malaya Thermal Plant is a 650-MW plant in Pililla, Rizal operated by Salcon Power Corp.

The Western Mindanao Power Corp. (WMPC), meanwhile, is a 100-MW bunker-fired power plant in Sangali, Zamboanga City while Southern Philippines Power Corp. (SPPC) is a 55-MW bunker-fired power plant in Alabel, Sarangani Province, both operated by the Alcantara Group.