THE issuance of a much-awaited natural gas-policy is essential to the sale of government-owned 650-megawatt (MW) Malaya Thermal Power Plant Complex (MTPP), an official of the Department of Energy (DOE) said.
“We are waiting for the Philippine natural-gas policy because one of the conditions of the Malaya auction is to convert it to natural gas,” Energy Undersecretary Felix B. William Fuentebella said.
The policy, once issued, will be included in the terms of reference (TOR). Previously, the TOR of the MTTP excluded the requirement to convert the asset to a liquefied natural gas (LNG) facility.
“Part of the condition is to convert Malaya into LNG,” Energy Secretary Alfonso G. Cusi had said. “We want power supply from Malaya to continue once privatized.”
A rebid of the MTTP will take place once the revised TOR is out, he said. “The Psalm [Power Sector Assets and Liabilities Management] Corp. will ask for [a natural-gas policy],” Cusi explained. “It will be its [Psalm’s] basis to revise the TOR.”
The MTTP currently runs on expensive diesel, the price of which could be a burden to consumers. “When nat gas becomes available, Malaya should be converted to nat gas because it will not only improve its performance but will also be competitive.”
Situated in Pililia, Rizal Province, the MTTP was rehabilitated in 1995 by the Korea Electric Power Corp. under a 15-year rehabilitate-operate-manage-maintain agreement. It consists of a 300-MW unit with a once-through type boiler and a 350-MW unit fitted with a conventional boiler.
The MTTP currently serves as a security plant, as it was designated as a “must-run unit” (MRU) meant to address any instability or supply deficiency that may occur as a result of sudden unavailability of any operating power plants in the grid.
The Psalm earlier said the MTPP will continue operating as MRU until it is privatized. The DOE is expected to issue the policy soon.
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Converting this very old and inefficient Malaya Power Plant from oil to LNG is a very bad investment! Govt will also waste billion pesos of tax payers money to put-up underwater LNG pipeline from Sucat to Malaya crossing Laguna Lake. It is better to invest this money to new and high efficiency power plants.