BP Amoco shows interest in BNPP

Another foreign investors has expressed interest in acquiring the mothballed Bataan Nuclear Power Plant (BNPP).

British Petroleum Amoco (BP Amoco) had sent feelers to the Department of Energy (DOE) about the possibility of buying the BNPP and converting it into a liquefied natural gas (LNG) storage facility. BP Amoco is a major global player in the oil and power industry.

"BP Amoco is eyeing the BNPP as an LNG facility and they are in the initial phase of studying the possibility," Energy Secretary Mario Tiaoqui told newsmen during the formal inauguration of the 1,000-megawatt (MW) combined-cycle gas-fired Sta. Rita power plant in Batangas.

Tiaoqui said the multinational oil firm is still studying their options and looking at the economics of converting the nuclear power plant into a major storage facility. "We still have a long way to go."

Energy officials took note of the timeless of the LNG storage facility as the country has intensified its exploration, development and utilization of natural gas as an alternative source of energy over the expensive and imported crude oil.

In fact, the Malampaya natural gas field in Palawan is expected to start commercial feed to several power plants as early as 2001. The Philippine National Oil Corp. (PNOC) is also exploring several natural gas projects in Fuga Island, Tarlac, and northern Cebu.

"The facility could also be used for regional distribution of natural gas," they added.

The power plant was erected during the Marcos administration but was swamped with protests from anti-nuclear movements and other environmentalists groups.

US-based Westinghouse Electric Corp. won the right to construct the BNPP for $600 million in 1974. However, the cost was increased to $1.2-billion a year after it was awarded to Westinghouse before settling to $2.1-billion.

The Aquino administration mothballed the 620-MW plant but upheld Presidential Decree (PD) 1177, which provides for an automatic appropriation for debt servicing of the plant's loans.

Last year, the outstanding debt stood at P11.3 billion and government has reportedly earmarked P6.3 million a day this year to meet its commitments with the plant's creditors.