Trans-Asia Oil eyes doubling power generation to 1,200 MW in 5 years

by Lenie Lectura, 12 April 2015
from BusinessMirror

TRANS-Asia Oil and Energy Development Corp. (TA Oil) is looking at doubling its power-generation capacity from the current 600 megawatts (MW) in the next five years.

To accomplish this, TA OIL President Francisco Viray said spending could reach at least $1.2 billion. 

“It is viable. It can be done in five years,” the company official said.

Viray said project financing will be sourced from a combination of internal funding and borrowings.

“One of the options that could be considered is to also issue shares. Go for bank loans, as well,” Viray added.

The company expects full commercial operations of the second unit of its coal-fired power plant in Calaca, Batangas, by 2017. The two 135-MW, coal-plant project, the South Luzon Thermal Energy Corp. (SLTEC), is under its joint venture with the Ayala group. It also holds a 25-percent stake in Maibarara Geothermal Inc., which owns and operates a 20-MW geothermal power plant in Santo Tomas, Batangas.

“We will proceed to look at the remaining assets of PSALM [Power Sector Assets and Liabilities Management Corp.] such as the CBK and Casecnan facilities,” Viray said when asked if the company is interested in any government assets being sold.

Trans-Asia Petroleum Corp., the exploration unit of TA-oil, is looking for investment opportunities in Australasia that includes Australia, New Zealand, New Guinea and neighboring islands in the Pacific Ocean.

“We’re actively looking at opportunities in the region so if we find some, we will have to spend,” Raymundo Reyes Jr. said, Trans-Asia Petroleum EVP.

TAPET holds seven contract blocks, namely Service Contract (SC) 55 (Offshore Southwest Palawan), SC50 (Offshore Northwest Palawan), SC6 Block A (Offshore Northwest Palawan), SC6 Block B (Offshore Northwest Palawan), SC51 (Cebu Strait and Northwest Leyte), SC69 (Camotes Sea), and SC52 (Cagayan province).

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