DOE expects additional 3,600 megawatts from natural gas power plants

MANILA, Philippines - The Department of Energy (DOE) expects an additional capacity of 3,600 megawatts (MW) to be provided by new natural gas power plants to be built in the country in the next six years, part of an estimated $5 billion in fresh investment in the downstream natural gas sector.

In his presentation during yesterday’s Philippine Economic Briefing, Energy Secretary Angelo Reyes said these power plants are among the investment opportunities that could be explored by investors who want to engage in natural gas development.

“Our policy to diversify energy sources creates various potentials for investments, which include putting up of critical infrastructure to bring the energy to various end-users. Among our top priority is the proposed gas transmission network in Luzon to bring the gas from Malampaya to different economic zones and transports sectors in the area,” Reyes said.

He said bulk of the additional power output, or 3,000 MW, would be “greenfield” projects or new gas-run power facilities and the remaining 600 MW would be existing power plants which will be up for conversion.

At present, the country has three natural gas-fired power plants. These are the 1,200-MW Ilijan; 1,000-MW Sta. Rita and 500-MW San Lorenzo. These plants are sourcing power from the $4.5-billion Malampaya deep water gas-to-power project.

Reyes said other potential ventures are the construction of pipeline projects; use of gas in big industrial zones; use of gas in buildings; use of gas in the transport sector; and setting up of LNG terminals.

The government is eyeing the establishment of 423 kilometers of gas transmission pipeline and 504 square kilometers of gas distribution pipeline for the delivery of natural gas for power generation, transmission and other commercial use.

These pipelines are Batangas to Manila, Bataan to Manila, Calaca spurline, Rosario-Biñan, Batangas-Cavite, Sucat-Malaya and the Edsa-Taft Loop.

Reyes said the Edsa-Taft Loop will be the main distribution infrastructure network for compressed natural gas (CNG) for major public transport routes in Metro Manila.

He added that investors may consider the use of natural gas in 30 economic zones in the country including Subic and Clark. He said natural gas could also be utilized in co-generation systems.

The use of gas in buildings is also being considered for district cooling systems.

For the transport sector, he urged investors to engage in CNG refilling, mother stations and CNG conversion kits.

“Our commitment is to sustain the momentum gained in attaining energy independence and pursuing power sector reforms. We will pursue government-private sector partnership in the development of strategic energy strategic infrastructures for natural gas,” Reyes said.