Enex Energy still on the lookout for Batangas plant customers
The Ayala group subsidiary wants to build a 1,100-MW power plant in Batangas City.
MANILA, Philippines — Enex Energy Corp. remains hopeful that its long-planned 1,100-megawatt Batangas power plant could clinch a supply deal.
The chair of the listed petroleum firm said the project could provide stability to the Luzon grid.
According to Enex chair Gerardo Ablaza Jr., the group’s Batangas Clean Energy (BCE) has been “making steady progress.” This is regarding to a plan to build the combined-cycle gas turbine project.
“The project is awaiting the launch of a competitive selection process (CSP) in order to secure a long-term offtake agreement—a key step towards construction and development,” the Ablaza said.
READ: Enex gets funding boost from parent Acen
A CSP is conducted to choose a supplier who can meet the power requirements of distribution utilities.
An off-take deal, meanwhile, involves a buyer agreeing to acquire all or a portion of a company’s future production. This is usually pursued to finance the construction of a facility, such as a power plant. It likewise provides a sure market for the producer.
“[T]his project is well-positioned to support grid stability and cleaner baseload capacity,” he added.
Apparent delays
This, despite the company previously saying the construction of the P60-billion facility would begin in August 2023.
Based on a document from the Department of Energy (DOE), the plant’s commercial operations were expected to begin by the latter part of next year or early 2027.
The project is targeted to rise on 24 hectares of onshore land and 15 hectares of foreshore area in Batangas City.
Ablaza said the group would continue to “concentrate on unlocking the full potential of SC55 and BCE.”
He was referring to Service Contract 55, a 9,880-square-kilometer deep-water block in the southwest Palawan Basin.
Ablaza said their oil and gas exploration contract in the West Philippine Sea remains under force majeure. This was due to geopolitical tensions.
“Nonetheless, we continue to engage with potential partners and sponsors who have both the technical capability and strategic interest to move this forward once conditions permit,” he said.
