AC Energy eyes LNG foray

0

AC Energy Holdings Inc., the power generation subsidiary of conglomerate Ayala Corp. (AC), is considering venturing into the liquefied natural gas (LNG) segment.

Advertisements

AC Energy president and CEO Eric Francia said although they are interested in investing in LNG, the profitability of such an undertaking is still being studied.

“Theoretically, yes, but practically speaking, it’s very challenging because you need the scale to make LNG work,” Francia said.

Before venturing into this field, he said one should consider the scale and the supply chain.

“Meaning all parts, all elements of that chain, because they are connected. You need to secure the gas supply, LNG facility, the gas plant, and then the off-taker,” he said.

He pointed out that if these concerns are not addressed properly, the project might not be successful.

“If there is any weak link, it’s not going to work,” he added.

If it involves a pipeline, the company should have to secure that as well, he said.

“It should also be financially feasible. Each element should be financially feasible,” he explained.

The Ayala Group had earlier unveiled its five-year blueprint from 2016 to 2020 for the expansion of its power (70 percent) and infrastructure businesses (30 percent). The five-year spending will likely surpass the $1 billion invested during the 2010-2015 plan.

Share.
loading...
Loading...

Please follow our commenting guidelines.

Comments are closed.