PetroEnergy RE arm reaches power-generation milestone

By Lenie Lectura – December 4, 2017
from Business Mirror

PETROGREEN Energy Corp. (PGEC), the renewable-energy (RE) arm of publicly listed PetroEnergy Resources Corp. (Perc), has already generated 1-billion kilowatt-hour (kWh) of electricity over the weekend.

Perc announced on Monday that PGEC reached the 1-billion generation mark on December 2, earlier than expected.

“The early achievement of this generation milestone, despite the relatively short period of the plants’ commercial operation and their modest capacities, owe to the efficient operation by our teams and the good availability of the units to the grid,” PERC President Milagros V. Reyes said.

“We are delighted by this milestone not only for our shareholders and Pgec partners but also for their contribution in reducing wholesale electricity spot market [Wesm] prices, as their must-dispatch character displaces more expensive fossil-fired plants in the Wesm dispatch order,” Reyes added.

PGEC’s power production comes from three RE plants: the 20-megawatt (MW) Maibarara-1 geothermal plant in Santo Tomas, Batangas; the 36-MW Nabas-1 wind project in Aklan; and the 50-MW DC Tarlac-1 solar facility in Tarlac City.

Beginning from their respective commercial operation date—February 8, 2014, for the Maibarara geothermal, June 10, 2015, for the Nabas wind and February 10, 2016, for Tarlac-1—these three facilities contributed 62.52 percent, 23.78 percent, and 13.70 percent, respectively, to the aggregate 1-billion-kWh output reached on December 2.

In Maibarara PGEC (65 percent) is in partnership with Phinma Energy (25 percent) and PNOC Renewables Corp. (10 percent), through the joint-venture firm Maibarara Geothermal Inc. (MGI). In Nabas it holds 40-percent equity in operator PetroWind Energy Inc. (PWEI) with EEI Power (20 percent) and Thailand-based BCPG (40 percent). PetroSolar Corp. (PSC), owner and operator of Tarlac-1 solar, is jointly owned by PGEC (56 percent) and EEI Power (44 percent).

PGEC currently supplies 8.4 percent of wind power and 5.94 percent of solar capacities in the country. MGI’s expected commissioning of the 12-MW Maibarara-2 unit this December will bring the field’s total gross capacity to 32 MW.  PGEC plans to develop an additional 400 MW of renewable-energy capacity in the next five years.

PERC Assistant Vice President Maria Victoria Olivar said that the company’s oil operations also achieved a  milestone.

“Total oil production in the Etame Marin block in offshore Gabon, West Africa, reached 100 million barrels on June 10, 2017, from the start of commercial oil extraction in 2002. Crude-oil production from 12 wells continues unabated in the block’s four oil fields—Etame, Avouma, Ebouri and North Tchibala.”

At end-September this year, Perc posted a 103-percent increase in its total consolidated income amounting to $7.71 million, compared to $3.81 million during the same period in 2016. The net income attributed to PetroEnergy equity holders increased by 227 percent, from $1.28 million in 2016 to $4.18 million in 2017.

The increases in net income and income attributed to equity holders of PERC were mainly driven by the efficient operation of PERC’s three RE projects.

The efficient operations resulted to an increase in the net income of the operating companies: 58 percent for MGI, 25 percent for PSC and 8 percent for PWEI compared to the similar period in 2016.

Slightly higher average crude-oil prices also contributed to the profit increase, with average price reaching $50.35 per barrel for the third quarter compared to $38.08 in the same period last year.