TeaM Energy eyes Sual, Pagbilao expansion

TeaM Energy Corp. is in talks with San Miguel Aboitiz for a US 1.5-billion expansion program for the Sual and Pagbilao coal facilities.

TeaM Energy president Frederico Puno revealed that they plan to expand the 735MW Pagbilao coal plant in Quezon by another 400 MW and the 1,200 MW Sual coal plant in Pangasinan by another 600 MW.

Puno said the Pagbilao expansion was estimated to cost US$ 500 million while the Sual expansion would cost US$ 1 billion.

 “We have started talks with San Miguel and Aboitiz. We want to expand Sual and Pagbilao because of the common facilities. There’s the pier, the water treatment plant, etc. Greenfield (new power plants) will cost around $ 1.5 million per MW while this one is around $ 1 to $ 1.2 million, which gives us advantage,” he said.
Puno said actual construction of the expansion would depend on the results of the feasibility study, which included market demand starting 2014.

San Miguel acts as trader of the electricity output of the Sual plant while Aboitiz administers the contract of the Pagbilao coal facility.

San Miguel and the Aboitiz Group will own the coal facilities after 2025.

Puno said earlier that it would be hard for TeaM Energy to undertake the expansion on its own because has to enter in a contract with San Miguel and Aboitiz for joint facility utilization for the jetty and other common facilities.

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Tags: news, project, Philippines, TeaM Energy eyes Sual, Pagbilao expansion