Phinma Energy defers coal, LNG projects

MANILA, Philippines - Phinma Energy Corp. is putting on hold its liquefied natural gas (LNG) and coal projects due to pricing issues and perceived oversupply in the country’s power grids, its top official said.

The LNG and coal projects will be temporarily shelved until it is favorable to restart developments for each project, Phinma Energy president and CEO Francisco Viray said in an interview.

LNG development, in particular, is not yet competitive in terms of technology, gas prices and terms and conditions of contracts, the company official said.

“Contracts for gas is still rigid, it has a take or pay component. So if you will not be able to use the gas supply, you have to pay for it,” Viray said. “We don’t know how early it will be considered a commodity.”

Phinma Energy is currently undertaking feasibility studies for a LNG receiving terminal in Sual, Pangasinan amid the need for new sources of fuel as the Malampaya deep water gas-to-power project is nearing depletion.

As for coal, Viray said the company is also deferring the development of the 900-MW coal-fired power plant in Sual, Pangasinan.

“We have deferred its development. We’re seeing oversupply between 2020 and 2025,” he said.

Earlier, company official said it is looking for a partner to build the new power facility, which has yet to secure an environmental compliance certificate (ECC) from the Department of Environment and Natural Resources (DENR).

The coal project was among the developments that would partially push Phinma Energy’s capacity to double from 500 MW at end-2016 in the next 10 years.

In the meantime, Phinma Energy is set to work on developing its renewable energy contracts such as solar, wind and hydropower, Viray said.

“We’re just developing our hydro (in Mabinay, Negros Oriental), solar plant in Pangasinan, wind expansion (in Guimaras),” he said.