AboitizPower eyeing LNG project in Quezon Province

AboitizPower edited

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.

Aboitiz Power earlier partnered with Clime Capital Management and Rocky Mountain Institute is conducting a feasibility study in developing around 3000 MW of offshore wind capacity in the country.