Listed firm Aboitiz Power Corporation is eyeing to develop a 150-megawatt power plant that will run on imported liquefied natural gas (LNG) to be sited adjacent to its existing diesel-fired power facility in Naga, Cebu.
“It’s an option in Cebu to be delivered by 2026 or 2027... that’s when Cebu will need new capacities,” Aboitiz Power President and CEO Emmanuel V. Rubio said.
He emphasized that the planned LNG-fed power facility will likely be pursued with the company’s Japanese firm-partner JERA, a joint venture between Tokyo Electric Power Company and Chubu Electric Power, which is also touted as one of the key players in the LNG industry globally.
Rubio noted though that at this stage, development plan on the project is still at feasibility study phase with no definitive timeframes yet on when this venture will finally take off from the drawing board.
On the proposed placement of the LNG-fired power facility, the Aboitiz Power executive stated that “there’s a site in Naga ...the location of the old coal plant which was dismantled.”
Apart from the Cebu prospect, Rubio conveyed that they are also continuously evaluating the planned 1,200MW Pagbilao LNG power plant venture being targeted to be on stream between 2029 to 2030.
Since JERA came in as a partner for the Aboitiz group in 2021, part of their calculated investment plan moving forward will be a plunge into gas-fired power developments, both in the Luzon and Visayas grids.
When they cemented their tie-up, the two companies have identified potential areas for collaboration, including joint development of LNG-to-power projects; the fuel sourcing and management of LNG; potential participation in aspects of plant operation and maintenance (O&M); and exploration of the use of new generation technologies.
Aboitiz Power is among the companies that have been advocating for "right-fit solutions" to satiate the country’s energy needs. Hence, it has been batting for multiplicity of technology applications that shall be pursued in the country’s power system.
Beyond its current portfolio of renewable energy (RE) generation assets, coal and oil-fired power plants, Aboitiz is similarly exploring prospective investments on nuclear power installations – via targeted deployment of small modular reactors.
Carlos Aboitiz, chief corporate services officer of the company, indicated that “in our mind, when we think about the power industry, you need a variety of solutions or technologies – it would never just be one.”
He pointed out that “each technology has its strengths and weaknesses, so who knows in the long-term, it will definitely be a portfolio of different technologies that we need.”