MAJOR POWER producers, including Razon-led Prime Infrastructure Capital, Inc. (Prime Infra) and LNGPH, a consortium backed by three of the country’s largest energy groups, are among the participants prequalified for the Philippines’ first mid-merit natural gas capacity auction.
The Department of Energy (DoE), in a Sept. 30 advisory, identified prequalified participants covering 14 proposed bids for the auction, which seeks to secure 3,840 megawatts (MW) of natural gas-fired generation capacity.
Prime Infra, which acquired a controlling stake in the natural gas assets of Lopez-led First Gen Corp. last year, is seeking to offer a combined 2,520 MW from four power plants.
These include the 1,000-MW Sta. Rita, 600-MW Sta. Maria, 500-MW San Lorenzo, and 420-MW San Gabriel combined-cycle natural gas power plants.
Prime Infra acquired a 60% stake in First Gen’s natural gas assets for P50 billion last year.
Meanwhile, LNGPH is backed by Meralco PowerGen Corp., Aboitiz Power Corp., and San Miguel Global Power Holdings Corp.
The three energy companies entered into a $3.3-billion agreement last year involving an integrated liquefied natural gas facility in Batangas.
Through Excellent Energy Resources, Inc., the consortium is seeking to offer capacity from the Batangas Combined Cycle Power Plant Phase 2, Iloilo Combined Cycle Power Plant, and a proposed natural gas facility in the Visayas.
LNGPH President and Chief Executive Officer Yari A. Miralao said the government had moved the bid submission deadline from Oct. 31 this year to the first quarter of 2027.
“The government issued a supplementary bid saying that the bid submission deadline has been moved from Oct. 31 of this year to the first quarter of next year,” Mr. Miralao told reporters on Wednesday.
He earlier said new natural gas-fired power plants were expected to begin operations over the next six years.
Other prequalified participants include Cordova Power Generation Corp., which is proposing natural gas-fired projects in Luzon, Cebu, and Panay.
Panasia Energy, Inc. is seeking to participate through its Bataan Combined Cycle Power Plant, while Therma Cebu Gas-to-Power, Inc. is proposing the Toledo Gas-Fired Power Plant Project.
The list also includes Quezon Power, Inc.’s Combined Cycle Gas-Fired Turbine San Francisco Power Plant and Vires Energy Corp.’s Vires Natural Gas Power Project.
The DoE is targeting 2,900 MW of natural gas-fired capacity for Luzon, comprising 1,400 MW scheduled to begin delivery this year, 500 MW by 2027, and 1,000 MW by 2031.
Another 940 MW is allocated for the Visayas, particularly Cebu and Panay, with delivery targeted between 2028 and 2031.
The auction, whose guidelines were issued in June, covers eligible existing, newly built, and upgraded natural gas-fired power facilities.
Energy Secretary Sharon S. Garin said the government was pursuing natural gas capacity alongside its renewable energy targets to support electricity supply.
“Alongside renewables, we are pursuing mid-merit natural gas capacity to provide the flexibility needed to support a more diversified generation mix and maintain system reliability,” Ms. Garin said at the Philippine Investment Energy Forum on Thursday.
The government is targeting renewable energy to account for 35% of the power generation mix by 2030 and 50% by 2040. — Sheldeen Joy Talavera