By Myrna M. Velasco

The proposed 2,000-megawatt gas fired power capacity of the joint venture of Phoenix Petroleum Philippines, Inc. of Dennis Uy and China National Offshore Oil Corporation (CNOOC) is targeting the ancillary services requirement of the country’s power transmission system as its market.

On nationwide basis, the country’s installed power capacity is at more than 23,000 megawatts – hence, the ancillary services need or reserve requirement of the system will also be very massive.

For a power system to be prudently operated, it shall be allotted reserve capacity of 26-30% of installed capacity, which in the case of the Philippines, may hover at 5.980 to 6,900 megawatts.

According to an official of the Department of Energy (DOE), the ancillary services needs of system operator National Grid Corporation of the Philippines (NGCP) will be an ideal market for gas-fired power facilities.

Energy Secretary Alfonso G. Cusi, in particular, has noted that part of the thrust of the expanded gas market push by the DOE “is to ensure that our power system will be provided with enough reserves.”

Gas is seen as an ideal component of a power system’s reserve because it has very fast ramp-up rate compared to other technologies.

At the same time, it is seen best deployed for mid-merit capacity in the electricity system because it could easily adjust on ramp-up and ramp-down depending on the supply-demand fluctuation in the system.

The CNOOC-Uy tandem is considerably new in the power industry, primarily in developing greenfield power project.

Uy’s Phoenix Petroleum previously invested in a thermal power plant in Subic, but it had not lasted long in operating the facility – it eventually divested the power plant to Trans-Asia of the Del Rosario group.

On its plunge into the gas sector, Uy’s joint venture with CNOOC will also be in the development of the country’s targeted liquefied natural gas (LNG) import facility that will be sited in Batangas province.

The LNG terminal which will have a capacity of 2.2 million tons per annum (mtpa) is targeted for commercial commissioning in year 2023 – in time for the anticipated decline in the gas production of the Malampaya field.