NEGROS, Philippines — SMC Global Power Holdings Corp., the power unit of diversified conglomerate San Miguel Corp. (SMC), plans to invest P18.5 billion for a 300-megawatt (MW) liquefied natural gas (LNG) combined cycle power plant in Negros Occidental.

In a filing with the Department of Environment and Natural Resources (DENR), SMC Global’s wholly owned unit Reliance Energy Development Inc. (REDI) is proposing a 4×75-MW LNG Combined Cycle Power Plant within the San Carlos City Ecozone in San Carlos City, Negros Occidental.

The proposed project, which has an estimated project cost of P18.5 billion, will be constructed inside the 49-hectare leased property from Grand Planters International Inc.

An on-shore LNG terminal facility will be constructed adjacent to the power plant to store and re-gasify the LNG that will be delivered through barging.

REDI is targeting to start constructing the power project in the third quarter with completion eyed in the third quarter of 2024. It is in the process of pre-feasibility study and environmental compliance certificate (ECC) application.

The company considered different technologies for the project, such as natural gas, coal, wind and solar, but chose natural gas since it is more flexible, secured, environmental-friendly and cost-effective.

Moreover, the Department of Energy issued a moratorium on new coal-fired power plants in 2020 to support the government’s direction towards clean energy, removing coal from REDI’s list of considerations.

REDI said its proposed power plant would help augment the demand for reliable and affordable power supply.

“The proposed power plant will not only supply enough electricity to Filipino households and businesses, but will also contribute to national development. The proposed project will also support DOE’s advocacy to shift to cleaner source of energy to reduce the GHG emissions from the energy sector,” it said.

However, for consumer welfare group, Koryente Konsumers Alliance, an LNG power plant will only lead to increase power rates in the area. 

“We have not explored indigenous fuel sources so the country will have to import LNG. LNG is a fossil fuel like oil, diesel and gas. The world market price is just as high and it is hard to secure supply due to the ongoing war between Russia and Ukraine. Although, we have Malampaya in the country, the well is set to dry up very soon and the country has not explored new areas to replace it.

Especially for Negros Island let us explore other sources of power like Mini-Hydro, Wind, Solar, and most especially Bagasse cogerneration with the Sugar Mills.

Negros being the sugar capital of the country with numerous sugar mills, let us increase the congeneration capacity of all sugar mills to create power.”

FRANKFURT, Germany -The largest economy in Europe, Germany, will experience a recession in 2019, a renowned think-tank predicted on Monday, as Russia’s energy supply cuts will cause inflation to surge.

The Ifo institute has slashed its prognosis for the German economy by four percentage points from a previous prediction made in June, now projecting a 0.3% decline in 2023.

According to the report, inflation would likely reach 8.1 percent this year and 9.3 percent the following.

“We are heading into a winter recession,” said Timo Wollmershaeuser, Ifo’s head of forecasts.

“The cuts in gas supplies from Russia over the summer and the drastic price increases they triggered are wreaking havoc on the economic recovery following the coronavirus.”

The think tank expected that real household earnings and purchasing power would decline significantly.

As per Wollmershaeuser, 2024 will likely see a “return to normal” with 1.8 percent growth and 2.5 percent inflation.

Gas exports to Europe via the key Nord Stream 1 pipeline were stopped at the beginning of September by Russian energy giant Gazprom, which said repairs would take an arbitrary amount of time.

The shutdown exacerbates an energy crisis in Europe and in Germany, which has long been dependent on Russian gas, and with Moscow indicted of utilizing energy as a weapon in the midst of tensions over the Ukraine war.

German inflation reached 7.9% in August, and earlier this month the government launched a new multi-billion-euro relief plan to assist consumers in coping with price inflation.

In an effort to combat the sky-high inflation experienced in the eurozone, the European Central Bank raised interest rates by a record 75 basis points last week and stated that further rises would ensue.