DoE considering LNG conversion for Malaya plant

BIDDING for the government-owned Malaya thermal power plant might go back to square one after the Department of Energy (DoE) said it may add a new condition: the conversion of the 650-megawatt (MW) facility into a liquefied natural gas (LNG) plant.

“We want to have available capacity, so what we said is part of the condition is to convert it into an LNG power plant,” Energy Secretary Alfonso G. Cusi told reporters.

The Malaya plant, which is among the remaining state energy assets that are up for sale, has been placed on the auction block with the Power Sector Assets and Liabilities Management Corp. (PSALM) receiving “letters of interest” from four companies as of Dec. 20, 2016.

Mr. Cusi said the plan to require the winning bidder to convert the facility into an LNG power plant was because of the country’s need for more baseload power. The Malaya plant runs on diesel.

He has been saying that the country’s power system requires 70% baseload power, which can deliver a dependable 24-hour supply. Diesel plants are suitable for peaking requirements, or when demand soars. Power stations that run on LNG are often versatile and can be used for both baseload and peaking supply.

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