A GAS aggregation business model holds out the promise of keeping power costs below global gas price levels, an official with ACEN Corp. unit Enex Energy Corp. said.
“I really hope the concept pushes through. Then, the industry can just focus on building power plants. The power or gas generators can just focus on generation and not be bothered with fuel and infrastructure,” Eric T. Francia, chairman of ENEX, told reporters in a briefing on Tuesday.
ENEX, formerly ACE Enexor, Inc., explores for crude oil and natural gas.
Prime Infrastructure Capital, Inc. and First Gen Corp. have announced plans to blend the gas remaining in the Malampaya field with imports of liquefied natural gas. The low-cost domestic gas thereby brings the average price of the blended gas to below international prices.
Mr. Francia said that the “aggregator” concept addresses the “pain points” in the gas supply process.
“My understanding is when the gas prices are high, you use Malampaya and when gas prices are low, you don’t use Malampaya. That is a very smart way to optimize our resources,” he said.
The Malampaya gas field supplies four natural gas-fired power plants with a combined capacity of 2,011 megawatts, accounting for 20% of Luzon’s energy requirements.
Prime Infra, through its subsidiary, Prime Energy Resources Development BV, is a member of the Malampaya consortium, the others being UC38 LLC and PNOC Exploration Corp. — Ashley Erika O. Jose