With the maintenance shutdown of the Malampaya gas production facility, state-run National Power Corporation (NPC) has scheduled emergency procurement of diesel oil that will be utilized as back-up fuel for the 1,200-megawatt Ilijan power facility in Batangas.

The state-owned power firm, in its tender notice, indicated negotiated procurement for P296.672 million worth of diesel fuel for the Ilijan facility. The solicited volume from interested oil companies would be around 9,100 kiloliters.

NPC has sent letters soliciting bids to Petron Corporation, Chevron Philippines Inc., Pilipinas Shell Petroleum Corporation, PTT Philippines, Phoenix Petroleum Philippines, Inc., Filpride Resources Inc. and Filoil Gas Company, Inc. The bid opening date was scheduled February 15, and it may take some time before awarding and actual fuel deliveries would materialize.

The diesel fuel bidding for Ilijan follows an earlier negotiated procurement of industrial fuel oil for the Naga thermal plant awarded to Thai firm PTT for a contract amounting to P311.068 million.

Meanwhile, as specified in the bid notice, the fuel deliveries for the Ilijan plant shall be done by tankers. The price reference shall be based on January average of diesel oil as indexed to the Mean of Platts Singapore (MOPS) at $84.80 per barrel and at foreign exchange rate of P46.0389 to the US dollar.

“The bidder with the lowest evaluated price for a particular delivery point shall be considered the winning bidder,” the auction’s terms of reference has emphasized.

The move to procure fuel for the Ilijan plant was reportedly based on the commitment to generate additional electricity in these critical times, even if the gas source of the facility has been on scheduled maintenance shutdown.

It was learned from sources at operating firm Korea Electric Power Corporation (Kepco) that Ilijan can run on diesel, but the volume of electricity generation shall depend on the fuel that can be supplied by NPC or its successor-company Power Sector Assets and Liabilities Management Corporation.