ERC weighs rate hike impact of expiring Malampaya contracts

ERC Chairperson Monalisa C. Dimalanta noted that with the expiration of the initial 25-year Service Contract 38 of the Malampaya gas field venture by February next year, the power plants are anticipated to shift to imported liquefied natural and that is seen to be a more expensive option if compared to the indigenous gas being extracted from the commercially producing field of the country.

Currently, the GSPAs of Malampaya are with the various gas plants of First Gen Corporation – namely the 1,000-megawatt Santa Rita; 500MW San Lorenzo; 414MW San Gabriel and 97MW Avion plants. By February next year, however, all of these gas supply contracts will already lapse. Dimalanta stated “the gas contracts will already expire, so there’s no more resource coming from the reservoir. And even if the license for the operator is extended, they may need to invest first to expand the area of operations and get more supply.”

It is within that precept, the ERC chief emphasized, that DOE has lined up LNG as the ‘bridge fuel’; while the country has yet to ascertain if there’s really additional gas that can still be lifted from the Malampaya field.

Energy Energy Latest News, Energy Energy Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

ERC needs to expedite price cap decisionLAST month, the Energy Regulatory Commission (ERC) announced that it would begin a review of the secondary price cap, a mechanism applied in the Wholesale Electricity Spot Market (WESM) that is meant to keep electricity prices from rising to excessive levels.
Source: TheManilaTimes - 🏆 2. / 92 Read more »

ERC warns of power rate hikes during dry season monthsThe Energy Regulatory Commission (ERC) on Thursday warned that electricity rates could spike during the hot dry season months amid the expected demand uptick and thin power reserves. Parang naririnig ko ito every year.
Source: gmanews - 🏆 11. / 68 Read more »

ERC urges energy conservation as dry season power rate hikes loomThe Energy Regulatory Commission told the public to exercise energy efficiency and conservation, especially during the dry season when electricity rate hikes are more likely. | zacariansINQ
Source: inquirerdotnet - 🏆 3. / 86 Read more »

35% of PH energy supply to come from renewable sources by 2030, says ERCThe Energy Regulatory Commission said the country is planning to make renewable energy one of its leading sources of power supply in less than 10 years, to account for at least 35 percent of the energy mix by 2030 and more than 40 percent by 2040.
Source: inquirerdotnet - 🏆 3. / 86 Read more »

ERC chief says power hikes expected this summerConsumers should expect higher electricity bills during the summer months as the dry season sparks a rise in energy demand and thin supply, according to the Energy Regulatory Commission (ERC) chief.
Source: CNN Philippines - 🏆 13. / 63 Read more »