Marubeni to expand Pagbilao plant capacity by 400 MW

March 3, 2013 3:44pm



Marubeni Philippines Corporation plans to expand the capacity of its 735-megawatt Pagbilao coal plant in Quezon by another 400 MW this year, a top company official confirmed.

According to company president and CEO Takashi Ishigami, Pagbilao plant operator TeaM Energy Corporation is preparing for the expansion.

"We are planning to expand Pagbilao plant and now we are preparing procedures. Probably we will have another 400 megawatts. If everything is okay, we will start the construction this year," he said.

TeaM Energy is a joint venture between Marubeni and another Japanese firm, Tokyo Electric Power Corp.

In an earlier interview, Aboitiz Power Corp. president Erramon Aboitiz said the Pagbilao expansion will cost "roughly about $800 million."

Aboitiz Power administers the Pagbilao plant's power contracts. Aboitiz said that the company is “anticipating a 50-50” joint venture with TeaM Energy, with the project expected to be completed by 2016.

Ishigami also said that TeaM Energy is looking into other possible opportunities in areas such as hydropower and liquefied natural gas, but has temporarily put off plans for a solar project due to the low feed-in tariff.

First Gen Corporation, the energy and power development arm of First Philippine Holdings Corporation, is awaiting the fginalization of Pagbilao's expansion plans before deciding whether to participate.

"We have a right to buy into Pagbilao led by TeaM and Aboitiz. Once they decide who their EPC is, we also decide," said First Gen president Francis Giles Puno in another interview.

Puno said First Gen has the right to acquire 30 percent of TeaM Energy's 50-percent stake in the Pagbilao  expansion. — BM, GMA News