Meralco unit to invest in LNG
BY LENIE LECTURA – APRIL 17, 2023
from Business Mirror
Atimonan One Energy (A1E), a wholly-owned subsidiary of Manila Electric Co.’s (Meralco) power generation arm Meralco PowerGen Corp. (MGen), is now shifting to liquefied natural gas (LNG).
The Meralco unit is seeking approval to put up a 2,400-megawatt (MW) gas power plant and an LNG terminal costing approximately P175 billion.
“A1E proposes to construct and operate a power plant that will be comprised of 4 x 600 MW natural gas-fired combined cycle gas turbine [CCGT], and an LNG Terminal with Floating Storage Unit (FSU), moored at a jetty adjacent to the power plant,” it said in a filing with the environmental management bureau over the weekend.
The proposed power plant will be constructed in two phases and each phase will consist of 2×600 MW capacities. Phase 1 is targeted to begin construction within the third quarter and is targeted to be completed by the first quarter of 2026. Phase 2 is targeted to be completed three years thereafter.
“The proposed Project (Phase 1 and Phase 2) and its components are estimated to cost about P 175 billion.”
A1E’s location was previously developed for a 2×600 MW coal plant in Quezon province, However, it has not been able to secure power supply contracts despite being certified by the Department of Energy (DOE) as an energy project of national significance. It had been previously considered as a possible site for LNG investment should the Pangilinan-led group decide to venture into the gas business.
“A1E’s previously proposed 1200 MW ultra-supercritical coal fired power plant high efficiency-low emission (HELE) class will be converted to a cleaner option, a 2,400 MW CCGT power plant using natural gas as fuel, delivered via an LNG carrier and LNG terminal.”
The natural gas required to operate the CCGT power plant will be received at an LNG terminal, which will be constructed in Lamon Bay. The LNG will be sourced from the exporting countries like Australia, United States, Middle East, and Africa, and will be delivered to the project site through LNG carrier. The contents will be unloaded and stored in the FSU or onshore buffer tanks, from which the fuel will be regasified and supplied to the CCGT power plant via a gas pipeline. The FSUs will be operated and maintained exclusively for the CCGT power plant gas supply requirement.
“The proposed CCGT plant is expected to operate as a base load plant; however, it may also operate on a daily start- stop mid-merit dispatch mode. Liquified natural gas is the main fuel and hydrogen is the future alternative fuel.”
A1E said the proposed project is to provide additional capacity to the grid to ensure energy security, in anticipation of growing power demand due to robust economic growth being experienced by the country’s post- Covid pandemic.
“The DOE estimates that peak demand for the Luzon grid will increase by 6 percent annually over the 2020-2040 timeframe. The department approximates that at least 1,800 MW of additional baseload generating capacity is needed to be built every year under RE35-High Demand Scenario, starting in 2023, to meet the projected power demand for Luzon. The proposed project is scheduled to go online in 2026 (Phase 1) and 2029 (Phase 2) and will provide up to 2,400 MW capacity to the Luzon grid.”
