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The Department of Energy (DOE) is currently reviewing and processing at least 39 new projects that have applied for certificates of energy projects of national importance (CEPNS) so that they can expand the streamlined processes in their permitting and licensing requirements.
According to DOE data, the projects are a combination of proposed oil and gas, as well as coal exploration activities, renewable energy facilities, downstream oil and gas facilities, such as liquefied natural gas (LNG) import terminals and oil distribution projects, and a variety of power plants. developments.
Of the 399 CEPNS applications, the energy department stipulated that 145 certificates with combined investment commitments of P681.94 billion had already been issued as of September 30 of this year.
Of the total, he said that 139 applications had been denied, while 76 were returned or the project sponsors were notified of “non-compliance with formal and / or documentation requirements.”
In all sectors, CEPNS applications in the upstream segment are for 20 oil / gas and coal exploration projects; 106 RE projects; 9 for LNG import terminals and oil production and distribution facilities; 194 power plant installations; and 70 transmission expansion and reinforcement projects.
When classified as CEPNS projects, these ventures could have the privilege of a 30-day approval process on their permits as prescribed in Executive Order No. 30 issued by President Rodrigo Duterte in 2017.
One of the CEPNS-certified projects recently given the signal to advance to the construction phase is the $ 300 million floating storage regasification unit (FSRU) import facility from First Gen Corporation and its company. associate Tokyo Gas Co. Ltd.
The long-term plan will be to transform that into a land-based import LNG terminal that will then require an aggregate investment of $ 1 billion.
The implementation and commercial operations of many CEPNS projects were hampered by the coronavirus pandemic, so the Secretary of Energy, Alfonso G. Cusi, previously advised the developers or sponsoring companies to present their respective upgrade plans.
Even power generation projects already in the testing and commissioning phases, primarily the 1,336-megawatt Dinginin thermal power plant, also moved the date of commercial operations to early next year due to movement restrictions that delayed implementations of work on the facility
Project construction deferrals are still considered feasible at this time due to the drop in energy demand following the impact of the pandemic. In fact, that in turn halted for one or two years the supply adjustment that could be experienced in the country’s electrical system.
New assessments established by the Operator of the Wholesale Electricity Spot Market (WESM) presage that the addition of capacity in the electricity system may be deferred until 2024-2025 instead of the previous projections of 2022-2023.
However, an important task for the DOE at this stage is to ensure that it has replacement for the gas fuel sourced from the Malampaya field on or before 2024, as the facility’s service contract will already end in four years.
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