AboitizPower sells power barges to Razon firm

MANILA, Philippines — Aboitiz Power Corp. has sold its two mothballed barge-mounted power plants currently docked in Navotas to Razon-led MORE Electric and Power Corp.

In a regulatory filing yesterday, AboitizPower said ownership and operational control of Mobile 4 and Mobile 6 are set to be transferred to the power utility serving Iloilo City.

The financial terms of the transaction, which was facilitated through AboitizPower subsidiary Therma Mobile Inc., were not immediately disclosed.

The two power barges, which run on bunker C oil, a low-quality fuel commonly used in marine vessels, have been mothballed since February last year.

Therma Mobile is now working closely with MORE Power to facilitate the barges’ transfer in compliance with grid and regulatory requirements.

AboitizPower said it had sent notices of the transaction to relevant agencies and entities, including the Department of Energy (DOE), Energy Regulatory Commission, National Grid Corp. of the Philippines and the Independent Electricity Market Operator of the Philippines Inc.

Last year, Therma Mobile temporarily shut down the two barges, citing technical and commercial challenges that prevented their full utilization and efficient operation.

AboitizPower owns Therma Mobile through Therma Power Inc., which holds the group’s thermal generation investments.

Therma Mobile continues to operate two other oil-fired power barges – Mobile 3 and Mobile 5 – whose operations remain unaffected by the transaction with MORE Power.

The Aboitiz Group acquired and rehabilitated Therma Mobile in 2011, with its four oil-fired power barges beginning commercial operations in November 2013.

The DOE is counting on power barges to help beef up electricity supply in the Visayas, which has been facing persistent grid alerts since May amid simultaneous outages at several major coal-fired facilities.