Aboitiz Power Corporation is eyeing Quezon Province as a viable location for its potential liquefied natural gas (LNG) projects to help meet the growing electricity demand in Luzon.
In a report by the Philippine Daily Inquirer, Aboitiz Power president and CEO Emmanuel Rubio said that the municipality of Pagbilao is an available site for possible LNG developments, provided that long-term “competitive LNG contracts” will be secured.
Rubio added that their plans for LNG have already been outlined. They emphasized that any future LNG projects would be focused on providing a new baseload alternative to coal.
Luzon requires an additional 600 to 700 MW of power every year. He further stated that the country relies on the reintegration of the 1,200-MW Ilijan LNG plant to address this demand, Rubio noted.
Conglomerate San Miguel Corporation announced that Atlantic, Gulf, and Pacific International Holdings (AG&P) had received the initial shipment of LNG in the country. The cargo will be utilized to supply fuel to the Batangas plant.
Last December, AboitizPower declared its plan to build a 150-MW LNG plant in Naga City, Cebu province, and is likely to collaborate with Japanese firm Jera for this project.
Rubio mentioned that AboitizPower is aiming to obtain long-term LNG contracts with the help of Jera. They had previously teamed up with Jera to study the potential of ammonia co-firing in coal plants.
In other developments, Rubio expressed uncertainty about the cost-effectiveness of offshore wind technology, which is currently considered expensive in the Philippines.
According to local power distributors, the average cost of wind power in the country is between $1.4 million to $1.6 million per MW, whereas solar power costs around $700,000 per MW.
Despite this, Rubio believes that offshore wind will become a feasible alternative with higher capacity than onshore wind and solar in due time, as the technology becomes more competitive.