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Friday, April 04, 2008

 

Power supply disruption seen to loom
as Malampaya shuts down for repair

 
A POWER supply disruption looms at the Luzon grid as Shell Petroleum Exploration Corp. (SPEX) is set to shutdown the Malampaya pipeline to make way for possible repairs at the country’s largest natural gas facility.

SPEX announced that the Malampaya gas receiving facilities will undergo a maintenance shutdown starting today to investigate a possible gas leak and make necessary repairs on its control valves.

The company said the repairs could take as short as a day to as long as six months depending on the extent of the damage.

The said facility supplies state-owned National Power Corp.’s (Napocor) 1,200-megawatt Ilijan plant, as well as First Gen Corp.’s 1,000-megawatt Sta. Rita and 500-megawatt San Lorenzo facilities.

These facilities combined generate roughly a third of the country’s power supply.

Despite the Malampaya’s scheduled shutdown, the generating companies assured ample supply of electricity for its customers.

Cyril C. del Callar, Napocor president, proposed that the Department of Energy create a task force that will assess and make recommendations in response to the Malampaya’s impending maintenance shutdown.

“The task force shall assist the [energy secretary] in formulating and implementing the needed contingency plans that will address the effects of any prolonged shutdown of the Malampaya pipeline,” he said.

Del Callar said the task force should look into interim regulatory solutions to the additional expenses resulting from higher fuel and procurement costs to replace the displaced natural gas from the Malampaya.

Jori Limatta, First Gas operations and maintenance general manager, said the company, which is majority owned by First Gen, “will still be able to run the Sta. Rita and San Lorenzo plants at contracted levels” through its reserve fuel.

In December 2006, a 25-day maintenance shutdown of the Malampaya gas pipeline helped push electricity prices at the Wholesale Electricity Spot Market up as power generators had to resort to more expensive fuel to make up for the displaced natural gas from the field.
-- Euan Paulo C. Añonuevo

  
 

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