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First LNG power plant in Philippines hits new delay

Published 06/10/2015, 02:33 pm
Updated 06/10/2015, 02:38 pm
© Reuters.  First LNG power plant in Philippines hits new delay
EWC
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MANILA, Oct 6 (Reuters) - Energy World Corp Ltd EWC.AX does not expect the Philippines' first power plant fired by liquefied natural gas to be ready for commercial operation until the first half of next year, another delay in the country's plans to boost cleaner energy.

Energy World, a Hong Kong-based energy firm listed in Australia, said late last week in its annual report that it now expects to bring the first 200 megawatts of its power project in Pagbilao town in Quezon Province into commercial operation by March and a second 200 MW unit by June.

It was previously looking to bring the first 200 MW unit into operation by the second quarter this year and the second 200 MW unit two to three months after.

The Philippines is promoting clean energy, seeking increased power supply from renewables and natural gas, but still looks set to remain dependent on imported coal for its electricity needs.

The company did not respond to requests for comments on the project delay.

According to local media, the plant's first 200 MW unit was originally supposed to be online as early as December 2014.

Energy World, which has power and natural gas production projects in Indonesia and Australia, will source regasified LNG for the Pagbilao plant from the LNG import and storage hub it is also building in Pagbilao.

The LNG hub, also the Southeast Asian country's first, is "well advanced" with the storage tank walls and the dome's top roof already complete, the company said in the annual report.

"(But) arrangements are being made to obtain LNG from a temporary floating storage unit," it said, without giving further details.

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