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PETROENERGY UNIT SIGNS TRANSMISSION LINE CONSTRUCTION DEAL WITH AKELCO



PetroGreen Energy Corporation (PGEC), the 100%-owned subsidiary of publicly-listed PetroEnergy Resources Corporation (PERC) entered into a Heads of Agreement (HOA) on 28 November 2012 with Aklan Electric Cooperative, Inc. (AKELCO) for the construction of the transmission line of PGEC’s 50 MW Nabas Wind Power Project. The project, being developed by PGEC under the Department of Energy’s (DOE) Service Contract 2009-09-002, is centered in the municipality of Nabas in Aklan province where AKELCO is the electricity distribution franchise holder.

The HOA was signed by PGEC Vice President (VP) F.G. Delfin Jr. and AKELCO General Manager (GM) Chito R. Peralta and witnessed by Aklan Governor Carlito Marquez and Nabas Mayor Romeo Dalisay. The agreement will eventually lead to a construction contract where PGEC engages AKELCO to erect the single-circuit 69kV overhead interconnection line based on engineering design and transmission line components furnished by PGEC. The signing followed the approval and release on August 2012 of the Nabas system impact study by the National Grid Corporation of the Philippines (NGCP) stipulating the connection scheme for Nabas and PGEC’s filing for commerciality declaration of the project with the DOE on September 10, 2012.

PGEC VP Delfin declared, “The interconnection distance between the Nabas wind farm in Barangay Pawa and the NGCP-approved connection point near Unidos, Aklan is less than 10 km. Among several wind projects awaiting commerciality declaration by the DOE, this makes the Nabas project quite likely the one with the shortest transmission line requirement which should translate to faster project construction completion.” AKELCO GM Peralta welcomed the construction and operation of the Nabas project saying that it is consistent with AKELCO’s goals of seeing more generation facilities to be put up in Aklan to increase power supply in the province and for AKELCO to provide services to these power companies. Speaking for the host LGUs, Aklan Governor Marquez stated, “The Nabas project is a testament to the continuing economic growth of Aklan province and Panay island as a whole, which for a long time suffered from underdevelopment. Equally important, the development and operation of Nabas wind power project is consistent with the province’s recent resolution of harnessing renewable energy for new power plants to be erected in the province. We also anticipate that Nabas will further maximize the eco-tourism potential of the province with the wind farm being near Boracay island.”

Subject to the commerciality declaration and MW allocation for the project, PGEC intends to start initial development works in Nabas by 2013 with a mid-2014 target for commercial operations. Along with the commercial start of the 20 MW Maibarara geothermal project in late 2013 and the expected increase in daily oil production from the Etame oilfields in Gabon by 2015, these projects will ensure new and steady revenues for both PGEC and PERC.