San Miguel awaits TeaM Energy proposal on Sual expansion

San Miguel Corp. (SMC) said it is open to the proposal of power producer TeaM Energy to raise the generating capacity of the Sual coal-fired power plant in Pangasinan by up to 600 megawatts (MW). Ramon Ang, SMC president said "They (TeaM Energy) just have to submit their proposal, if they're proposing 400 MW to 600 MW." San Miguel markets the electricity output TeaM Energy makes at the plant. After 2025,TeaM Energy will transfer the operation of Sual to San Miguel. “What we'll do is we'll go ahead with the feasibility study, which we target to complete some time in September and then approach San Miguel," TeaM Energy president Federico Puno said. TeaM Energy is a joint venture of Tokyo Electric Power Corp. and Marubeni Corp. Puno said TeaM Energy is updating its feasibility study. He said the timing of the construction of the additional facilities that can produce 400 to 60 megawatts is part of the study’s scope. Puno also said they will consider the impact of the additional generation capacity on the power grid and factor in also the plan of AES Corporation to add 600 MW to the power produced at its Masinloc plant in Zambales. Increasing Sual’s capacity could cost TeaM Energy $1 million to $1.2 million per megawatt or about $400 million to $600 million, according to Puno. — ELR/VS, GMA News