MANILA, Philippines - AC Energy Holdings Inc., the power generating arm of conglomerate Ayala Corp., is considering to add liquefied natural gas (LNG) in its energy portfolio even as the company remains prudent in expanding its generating capacity.
AC Energy president and CEO John Eric T. Francia said in a recent interview the company is interested in putting up a LNG plant.
But he stressed they would only go into LNG if it is financially feasible.
“Practically speaking, it’s very challenging because you need the scale to make LNG work,” Francia said.
Apart from scale, the value and supply chain should be ironed out to make the LNG project viable.
“You need to secure the gas supply, LNG facility, the gas plant and then the offtaker,” Francia noted. “Maybe if it involves a pipeline, you have to secure that as well.”
If the overall supply chain has a weak link, he said the LNG project would not work.
“Everything has to be in place, each element should be financially feasible,” Francia explained.
AC Energy is currently reviewing its plans in terms of target capacity as it remains on track to meet the targeted 1,000 megawatts (MW) in generating capacity by next year.
Last month, Francia said the company remains prudent in expanding its energy portfolio amid a potential oversupply from power plants expected to come online starting 2018.
Most of its investments are in coal-fired power plants but the company is looking at hydropower and solar projects to diversify its renewable energy (RE) portfolio.
Currently, the Ayala company has the 52-MW Northwind Power Development Corp. in Bangui, Ilocos Norte and the 81-MW wind farm in Pagudpud, Ilocos Norte through affiliate North Luzon Renewable Energy Corp. (NLREC).