By Alena Mae S. Flores – January 07, 2018 at 07:45 pm
The Energy Department is optimistic of the privatization of the 650-megawatt Malaya thermal power plant in Pililla, Rizal this year, following the issuance of natural gas industry rules.
Energy Undersecretary Leonido Pulido III said Power Sector Assets and Liabilities Management Corp. started the privatization process for the Malaya power plant in February last year, but it was put on hold following the decision of Energy Secretary Alfonso Cusi to convert the plant into a liquefied natural gas or coal-fired power plant.
“We put it on hold because the secretary wanted to change the TOR [terms of reference] to require that it would be converted into a LNG power plant or coal,” Pulido said.
Pulido said the department must resolve legal and technical issues regarding the conversion prior to the privatization. “The question is how can you require it to be converted into LNG power plant if you don’t have the supply on hand…So we decided to suspend privatization of Malaya until we could come up with the assurance that there will be future supply and that assurance of future supply is the Philippine Downstream Natural Gas Industry Rules,” he said.