A top official of Aboitiz Power Corp. said the company is seriously considering the use of liquefied natural gas (LNG), but cost is a factor that deters the company from proceeding and building a terminal facility.
“Several groups in the power industry have been actually looking at LNG. We know that First Gen group is very big in LNG, and Meralco is also looking at it, but I believe all of us face the same problem which is the cost of building a terminal of a certain size,” AboitizPower CEO Erramon I. Aboitiz said in an interview with reporters.
“It’s massive… It’s something very difficult for one party to do that alone, maybe that’s something government should do – get in, facilitating this terminal so that power producers can just buy the LNG,” Aboitiz said.
“LNG makes sense from an economic point of view, even if the cost of fuel is more expensive,” he said.
“It makes sense for peaking, mid-merit operations so you will see that people will start building power plants to be able to supply that portion of the demand,” Aboitiz noted.
“But to do it alone and put up your own facility by yourself, it cannot be done,” he said.