PHINMA ENERGY Corp. is entering the downstream oil industry, initially catering to the fuel requirement of its own diesel plants, through subsidiary One Subic Oil Distribution Corp., company officials told stockholders on Wednesday.
Francisco L. Viray, Phinma Energy president and chief executive officer, said the company had signed a memorandum of agreement with the Subic Bay Metropolitan Authority to extend the lease of the 116-megawatt (MW) One Subic Power Generation Corp. for 10 years.
Mariejo P. Bautista, senior vice-president for finance and controller, said the tank being used by One Subic Power would be used for the company’s foray into the downstream oil industry. The tanks have a capacity of 16 million liters of bunker fuel, which is used by the power plant.
Ms. Bautista said the depot’s expected volume this year is 50 million liters.
“Most of it is own-use,” she said, adding that the power plant uses bunker fuel.
Ms. Bautista said the move to enter the downstream oil industry is to avoid the margins added to what it pays to existing suppliers because of the imposition of excise tax on the fuel.
She noted the power plant does not utilize the tanks’ full capacity, thus the plan to use it to store bunker fuel for the company’s own use.
“We might as well use those tanks. We bought the shares of that company that operates that power plant,” she said.
In 2017, Phinma Energy had a total attributable capacity of 636.4 MW, slightly lower than the 639.4 MW in 2016, Mr. Viray told stockholders.
He said Phinma Energy was looking at projects that would diversify its generation portfolio to include gas and hydropower.
Three projects under study are combined cycle gas turbine (CCGT) plants, including the 383-MW Sta. Ana CCGT power plant in Port Irene, Sta. Ana, Cagayan; the 383-MW Sual CCGT floating power plant in Brgy. Baquioen, Sual, Pangasinan; and the 138-MW Argao floating CCGT power plant in Brgy. Bulasa, Argao, Cebu.
A fourth project under study is the 21.6-MW Ilog hydroelectric power plant in Mabinay, Negros Oriental.
On Thursday, shares in Phinma Energy slipped by 2.45% to close at P1.59 each. — Victor V. Saulon