Trans-Asia Oil defers expansion plans

Trans-Asia Oil and Energy Development Corp., a power development arm of the Phinma Group, will temporarily put in the back burner its plan to expand  its 21-megawatt bunker-fired power plant.

The company and its subsidiary CIP II Power Corp. said that they “are constrained to suspend the said plant expansion”.

It said consequently, the firm would also have to suspend the release of some P378.5 million for the project located at the Camelray Industrial Park II in Laguna.

Trans-Asia said the P378.5 million, raised through its rights offering, was supposed to be used to finance the expansion of the said plant.

The power firm said it decided to set aside the project due to some economic reasons.

“The projected increase in demand for electricity based on the projected growth in number and size of industrial users did not materialize.”

The company has cited other reasons for its decision such as the drop in electricity demand due to the US economic downturn and the fuel price risks.

Within the first quarter of next year, the company said it would be able to decide on what to do with the project.

“Trans-Asia is scheduled to determine and decide, by the first quarter of 2009,  on whether to proceed with the plant expansion,” it said.

Trans-Asia has a total generating capacity placed at 76.4 MW which includes the 52 MW power plant in Norzagaray, the 3.4 MW in Guimaras and the 21 MW CIPP in Laguna.

– Donnabelle Gatdula