Phinma-led Trans-Asia Oil and Energy Development Corp. expects to complete within the third quarter this year the transfer of its 21-megawatt bunker fuel-fired power plant to La Union.
This facility, managed by the company’s wholly owned subsidiary, CIP II Power Corp., was earlier targeted to start operating by January 2012 but the start was delayed by bad weather.
Groundbreaking started in April of last year and by July 2011, all major equipment and structures were transferred from Laguna to its new site in Bacnotan, La Union, adjacent to the Holcim cement plant. Erection and installation works are still ongoing.
The source said that once operational, CIP II Power’s facility will operate as a merchant plant that will not only sell power to the wholesale electricity spot market (WESM), but also supply emergency power to Holcim.
This power plant will likewise serve the power requirements of Quezon II and Sorsogon I electric cooperatives.
CIP II Power Corp. (CIPP) used to operate in the Carmelray Industrial Park II in Laguna and supplied the electricity requirements of the park through its 21-MW bunker facility.
In April 2009, however, the company sold CIPP’s ownership of the power distribution network inside the park, effectively terminating the original concession agreement with the park operator, Carmelray—JTCI Corp.
This thus resulted in the termination of CIPP’s power operations inside the park.
In December 2010, CIPP’s board of directors approved the transfer of its power plant from Laguna to La Union.