Steps to ensure Luzon power supply mulled

The National Power Corp. (Napocor) has urged the Department of Energy (DOE) to immediately form a task force to avoid a major disruption in Luzon’s power supply to be brought about by the scheduled maintenance shutdown of the Malampaya natural gas pipeline.

In a letter to Energy Secretary Angelo T. Reyes, Napocor president Cyril del Callar said the creation  of the task force “within the next 24 hours” is crucial in ensuring that a contingency plan could be immediately formulated.

The task force will be chaired by Reyes himself with the different major stakeholders in the energy industry as members.

“The task force shall assist the DOE in formulating and implementing the needed contingency plans that will address the effects of any prolonged shutdown of the Malampaya pipeline,” Del Callar said.

Del Callar made this recommendation after lead Malampaya operator Shell Petroleum Exploration Corp. (Spex) announced that the gas receiving facilities will undergo a maintenance shutdown on April 4 to investigate a possible gas leak and make necessary repairs on the control valves. 

The Malampaya facility services the 1,200-megawatt Ilijan natural gas power plants of Napocor and the 1,500 mw Sta. Rita and San Lorenzo natural gas power plants of First Gen Corp.  

Spex said the repairs could take as short as one day to a maximum of six months, depending on the damage.  

Aside from the DOE, Del Callar proposed that the task force be composed of representatives from the Napocor, National Transmission Corp., Power Sector Assets & Liabilities Management Corp., Philippine Electricity Market Corp., Energy Regulatory Commission, Manila Electric Co., big industry groups and consumer groups.

Meralco’s inclusion in the task force was recommended by Del Callar as the firm’s independent power producers – with a combined capacity of 1,500 mw – are dependent on the natural gas from Malampaya.

Del Callar said the task force will specifically assess the power situation thoroughly in the event of a prolonged shutdown.

The special group will also draw up strategies to address such prolonged shutdown such as deferment of plant and major transmission line maintenance.

It will also try to define needed logistics such as sufficiency of alternate fuels (coal, distillate) and fasttrack procurement of such alternate fuels and other needed logistics.

Del Callar said the task force may also tap private sector assistance to address the situation such as running of embedded generators, interruptible loads and voluntary load curtailment program.  

The Napocor chief said the group may also institute interim regulatory solutions on the additional costs as a result of higher fuel and procurement costs.