Shell, Phoenix secure deal with PSALM for fuel supply

MANILA, Philippines — Pilipinas Shell Petroleum Corp. (PSPC) and Phoenix Petroleum Philippines Inc. have bagged contracts to supply the fuel requirements of state-run Power Sector Assets and Liabilities Management Corp. (PSALM).

PSPC won the contract for the procurement of supply and delivery of oil-based fuel for Ilijan Natural Gas Power Plant (INGPP) and Phoenix for the Malaya Thermal Power Plant (MTPP).

The state-run firm has issued the notices of award to Phoenix and Shell.

 PSALM said PSPC and Phoenix passed the post-qualification process it conducted that determined the existence, authenticity, and sufficiency of the eligibility and technical documents they submitted.

In the bid opening that PSALM conducted last April 30, Shell submitted the lowest bid for the supply and delivery of neat diesel oil for INGPP with an offer of P961.16 million.

As for the supply of industrial fuel oil for MTPP, Phoenix emerged as the lowest bidder with a bid amounting P1.14 billion.

Phoenix also submitted the lowest bid for the supply and delivery of diesel oil for MTPP at P47.7 million.

Other bidders who competed for PSALM’s three procurement projects include Petron Corp., Petrotrade Philippines, Seaoil Philippines, and SL Harbor Bulk Terminal Corp.

PSALM, formed by the 2001 Electric Power Industry Reform Act, is the state firm in charge of privatizing government power assets as well as managing National Power Corp.’s power plants and debt. It buys the fuel requirements of state-owned power plants.

Managed by PSALM, Malaya power plant was designated as a must-run unit (MRU) by the DOE to address supply deficiency when operating power plants in the grid suddenly bog down or become unavailable.

It will operate as an MRU until the DOE finalizes its privatization schedule.

Meanwhile, the Ilijan power plant is being operated by Korea Electric Power Corp. (Kepco), through Kepco Ilijan Corp., under a build-operate-transfer contract that will expire in 2022.

Its independent power producer administration is held by San Miguel Corp., through subsidiary South Premiere Power Corp.