NEWSFLASH

BATAAN NUCLEAR PLANT CONVERSION TO GAS EYED

Morong, Bataan, April 9, 2000 Residents in Morong and nearby towns are excited over reports that the long-mothballed Bataan Nuclear Power Plant could be in operation soon using natural gas which has just been discovered in Philippine shoals.

Energy Secretary Mario V. Tiaoqui said United Kingdom-based British Petroleum Amoco Plc has expressed keen interest to convert the mothballed Bataan Nuclear Power Plant (BNPP) into a liquefied natural gas-fired power facility.

The consortium has made some initial studies on the possibility of fuel shift for the nuclear plant.

BP Amoco Plc is currently one of the world's leading energy and petrochemical groups. It produces energy from oil, gas and solar power; and produces petrochemicals for fibers and plastics.

In 1998, British Petroleum Co., through its headquarters in the United States, and Amoco Corp. formalized their $53 billion merger, after winning regulatory approval from the US Federal Trade Commission. BP is the thirdlargest oil company in the world.

Earlier, the Philippine National Oil Co. (PNOC) expressed interest to convert the BNPP facility, but talks have been stalled, since initial evaluation shows that the conversion would be more expensive.

The National Power Corporation, which owns the facility, earlier junked plans to convert the plant it noted there is an excess in power supply. Another major consideration against conversion is the huge amount it would cost the government.

Despite those arguments, interested parties noted the conversion was still necessary because that the current power reserve might not be able to sustain the demand, especially if the economy would recover soon.

The nuclear plant could serve as a standby power supply in case the demand would go up, they argued.

The power firm noted the country spends at least P2.5 million daily to amortize and pay interest on loans that were secured to finance the construction of the Bataan plant in the 70's.

The NPC is also spending about P60 million annually for the plant's maintenance.

On top of that, the Philippine government is also mandated to pay its $300 million loan it initially secured from the plant's developer, US-based Westinghouse Electric Corp.