Project Description
Project Description
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PROJECT DESCRIPTION FOR SCOPING
Proposed 1,700 MW Batangas Combined Cycle Gas Turbine Power Plant Project
Panasia Energy, Inc. Barangays Dela Paz Proper and Ilijan, Batangas City
Table of Contents
List of Tables
List of Figures
List of Annexes
Annex 1. Location Map of the Proposed 1,700 MW Batangas Combined Cycle Gas Turbine Power
Plant Project ............................................................................................................................... 14
Annex 2. Impact Areas of the Proposed 1,700 MW Batangas Combined Cycle Gas Turbine Power
Plant Project ............................................................................................................................... 15
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PROJECT DESCRIPTION FOR SCOPING
Proposed 1,700 MW Batangas Combined Cycle Gas Turbine Power Plant Project
Panasia Energy, Inc. Barangays Dela Paz Proper and Ilijan, Batangas City
Panasia Energy, Inc. (PEI) is a corporation duly organized under and by virtue of Philippine laws.
PEI was registered in the Securities and Exchange Commission on 22 October 2007. As stated in
the Articles of Incorporation, the general business of the corporation is power generation. PEI is a
wholly-owned subsidiary of Millennium Energy, Inc. (MEI).
The proposed 1,700 MW Batangas Combined Cycle Gas Turbine Power Plant Project of PEI is to
be located in Barangays Dela Paz Proper and Ilijan, Batangas City. The proposed Project will be
located in area consisting of 60 hectares which will be leased by PEI. The location map of the
proposed Project is shown in Annex 1.
The direct impact areas (DIA) cover the areas where the proposed Project will be sited. In terms of
socio economic benefits, the DIA areas include the host local government units (LGUs): Barangays
Dela Paz Proper and Ilijan, Batangas City and Region IV-A, otherwise known as the CALABARZON
Region. These are the project beneficiaries for employment, business opportunities, taxes and
benefits from Department of Energy (DOE) Energy Regulations (ER) 1-94 of the Electric Power
Industry Reform Act (EPIRA) Law as well as reliable power supply that contributes to the economic
stability of the Region.
The indirect impact areas (IIA) include the effluent discharges and plant’s air emissions that comply
with the standard limits of the DENR. The IIA in terms of socio economic benefits, will cover the entire
country, which will benefit from the stable and reliable power supply which can contribute further to
the economic stability of the country. The direct and indirect impact areas are shown in Annex 2.
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PROJECT DESCRIPTION FOR SCOPING
Proposed 1,700 MW Batangas Combined Cycle Gas Turbine Power Plant Project
Panasia Energy, Inc. Barangays Dela Paz Proper and Ilijan, Batangas City
Strong economic growth and a rise in energy demand have exerted pressure on the Philippines’
energy sector in recent years. The Philippines’ energy usage is increasing because of growth in our
industries and the growing demand from households. Daily activities in large and small businesses,
hospitals, schools, offices, government agencies and households are heavily dependent on
electricity. However, the power supply from existing power plants is not enough to meet the
continually increasing demand. The Philippines demand-supply outlook for 2016-2040 is presented
in Figure 1.
Given the country’s rapidly growing economy, demand for power will outpace supply in the
Philippines in the next years. The proposed Project will help augment the demand for reliable and
affordable baseload power supply. The proposed Project will not only supply enough electricity to
Filipino households and businesses but will also contribute to national development.
The DOE Power and Supply-Demand Outlook for 2014-2020 as presented in Figure 2, shows an
increasing power demand in Luzon Grid at an average annual growth rate (AAGR) of 4-5%. With
this projection, an additional capacity is needed on top of the already committed power projects. In
order to address the gap, the PEI has proposed to install its Project at Barangays Dela Paz Proper
and Ilijan, Batangas City. Upon expected commercial operations in 2024, the proposed Project’s
capacity of 1,700MW and its annual associated energy of 6,307,200 MWh shall be made available
and provided to the Luzon Grid.
2
PROJECT DESCRIPTION FOR SCOPING
Proposed 1,700 MW Batangas Combined Cycle Gas Turbine Power Plant Project
Panasia Energy, Inc. Barangays Dela Paz Proper and Ilijan, Batangas City
With the proposed Project, there will be opportunities for employment, local business growth,
increased government revenues (through local and national taxes and permitting fees), and
development assistance to the host communities. Brisk business opportunities for the local suppliers
around the area will come during the construction and operation phases of the proposed Project.
The taxes collected from the proposed Project, which include property tax, remittance, and corporate
income tax, would be an additional income for Barangays Dela Paz Proper and Ilijan and the City of
Batangas through the increased Internal Revenue Allocation (IRA).
Employment Opportunity
The proposed Project will generate additional jobs as it will require manpower during construction
and operation phases. PEI will require the contractors to prioritize hiring of qualified residents of
Barangays Dela Paz Proper and Ilijan and other barangays in Batangas City during project
implementation. It is expected that the proposed Project will need an estimated number of 150
workers during construction and an estimated number of 100 personnel during commercial operation.
PEI shall closely coordinate with the other employment service offices in hiring local personnel for
the proposed Project.
The host barangays will benefit from the Corporate Social Responsibility (CSR) Programs of PEI
which include programs such as the following:
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PROJECT DESCRIPTION FOR SCOPING
Proposed 1,700 MW Batangas Combined Cycle Gas Turbine Power Plant Project
Panasia Energy, Inc. Barangays Dela Paz Proper and Ilijan, Batangas City
One centavo for every 1 kWh of electricity sold will go directly to the trust funds of the host
beneficiaries such as the LGUs of regional, provincial, city, and barangays and other indigenous
people. The fund will be used for local projects in the following categories and respective budget
shares:
In the absence of Community and People Affected funds allocated for the same shall form
part of the fund for the host barangays.
There is no other alternative site considered for the proposed Project other than the 60 hectares
located at Barangays Dela Paz Proper and Ilijan. And also, one of the considerations in the site
selection is the proximity to the existing LNG pipeline of Shell Malampaya.
The proposed Project will utilize a combined cycle gas turbine technology for the following reasons:
Higher Efficiency. The higher the exhaust temperature and pressures at the turbine outlet,
the higher is the efficiency.
Lower Emission Levels. Due to high efficiency it will result to lower fuel consumption rates,
thus there will be lower emission of combustion gases such as such as Carbon Dioxide
(CO2), Carbon Monoxide (CO), Sulfur Oxides (SOx) and Nitrogen Oxides (NOx), and
Particulate Matters (PM).
The use of LNG as fuel will have an emission that is more of environment-firendly compared
to other fossil fuel-fired thermal power plant.
2.3.3 Resources
1. Water: The water requirement of the proposed Project will be sourced from the area based
on the results of the study that will be conducted by PEI.
2. Seawater: This resource will be used as coolant medium in the condensing system of the
steam turbine. Abundant supply of this resource which will be required in large quantity
during the operation is one criteria that favour the siting of the plant in the area. Seawater
can also be used as alternative source of domestic and process water through desalination
process.
3. Fuel Supply: The first option of LNG supply is still the Shell-Malampaya system. The second
option is LNG will be sourced through import. The presence of the existing LNG-fired power
plant near the area where the Project will be constructed will be an advantage since
economic of scale will play a major role in pricing the LNG.
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PROJECT DESCRIPTION FOR SCOPING
Proposed 1,700 MW Batangas Combined Cycle Gas Turbine Power Plant Project
Panasia Energy, Inc. Barangays Dela Paz Proper and Ilijan, Batangas City
Table 1 presents the major components, support facilities and pollution control devices for the
proposed Project.
Components Specification/Description
Gas Turbines The type of gas turbine that will be utilized in the proposed plant is of high
efficiency class type. A gas turbine is a combustion engine that convert
natural gas or other liquid fuels to mechanical energy. This energy then
drives a generator that produces electrical energy.
Compressors Compressor section of the gas turbine engine has many functions. Its
primary function is to supply air in sufficient quantity to satisfy the
requirements of the combustion burners of the gas turbine. It also provides
cooling air to the blades of the gas turbine. Since gas turbine and
compressor are installed in a single shaft, manufacturer/brand of these
major equipment are the same.
Steam Turbine The system will be used to convert the heat energy of steam from heat
recovery steam generator to mechanical energy. Steam turbine is the prime
mover of the generator.
Generators This is an electrical equipment that converts the mechanical energy of the
gas turbine into electrical energy. Steam turbine and gas turbine have its
own generator.
Transformers This is an electrical device that converts the voltage of an electrical power
from low to high depending on the points of use. In a power plant there are
numbers of transformers that categorized as low voltage, medium voltage,
and high voltage. The main transformers of the power plant converts the
electrical power generated at low voltage from the generator to high voltage
of the transmission lines.
Water Treatment To process raw water either from deepwell or seawater in order to come-up
Plant of domestic water and demineralized water for the usage of the power plant
in its operation.
Heat Recovery This equipment is for the production of steam, which is the prime mover of
Steam Generators the steam turbine. It utilizes the exhaust of the gas turbine in the form of
combustion gases as heating medium.
Condenser and its The system is a must in a steam turbine operation in order to have
cooling system recirculation of the demineralized water and primarily to save on
demineralized water requirement. Steam from the steam turbine is
condensed at the condenser where the cooling medium, in this proposed
power plant, is seawater.
Wastewater The system will be put in placed in order to treat all the identified
Treatment Plant wastewater generation from plant processes to comply with the existing
effluent standards.
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PROJECT DESCRIPTION FOR SCOPING
Proposed 1,700 MW Batangas Combined Cycle Gas Turbine Power Plant Project
Panasia Energy, Inc. Barangays Dela Paz Proper and Ilijan, Batangas City
The main components of the proposed 1,700 MW Batangas Combined Cycle Gas Turbine Power
Plant shall be as follows:
Facility/System ID Quantity
Waste Water Treatment Plant 1 lot
Bund Walls One for every tank
1. Liquid fuel tank
2. Acid (HCl or H2SO4) tank
3. Caustic Soda tank
Sewage Treatment Plant 1 lot
CEMS 1 probe for every
stack
Oil-water separator 1 lot
Upon issuance of Environmental Compliance Certificate, the proposed Project will be implemented
in two (2) phases. Each phase is estimated to be completed in thirty (30) months.
The proposed Project and its components are estimated to cost around PhP 63B.
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PROJECT DESCRIPTION FOR SCOPING
Proposed 1,700 MW Batangas Combined Cycle Gas Turbine Power Plant Project
Panasia Energy, Inc. Barangays Dela Paz Proper and Ilijan, Batangas City
2.7 Project Phases, Key Environmental Aspects, Wastes, Issues, Built-in Measures
Environmental
Environmental
Component Likely to Potential Impact Prevention/Mitigation/Enhancement Measures
Aspect
be Affected
CONSTRUCTION PHASE
LAND
Cut and fill Land use and Change/Inconsistency in The Project site is within the vicinity of an existing power plant which is
activities Classification Land Use within an industrial area and most likely consistent with the general land
use of Batangas City.
Construction of the Encroachment to ECA The Project site has not encroached in an ECA.
proposed Project Geology/ Change in surface Designate a competent person to prepare a proper grading plan including
Geomorphology landform/terrain/slope a cut and fill strategy.
Change in sub-surface The excavations done at the site and its peripheral roads shall cause
underground permanent but low level of disturbance.
geomorphology Strict conformance to the recommendations of the geotechnical study
Site Preparation, Pedology Soil erosion Construction of soil erosion control measures either by engineering
and Earthwork structure or planting of grasses/trees.
Placement of excavated soil materials in appropriate stockpile areas with
avoidance of stockpiling along drainage ways/creeks.
The soil stockpiles will be covered with plastic sheets/geotextile, or
planted with grasses/ small shrubs for erosion control.
Terrestrial Ecology Vegetation removal and Trees will be cut only when necessary and with applicable permit from
loss of habitat DENR.
Threat to existence There are no ecologically sensitive habitats such as mangroves, etc. that
and/or loss of important will be affected by the proposed Project.
local species
Threat to abundance,
frequency and
distribution of important
species
Hindrance to wildlife
access
WATER
Water consumption Hydrology/ Change in drainage The water requirement of the proposed Project will be sourced from the
during construction Hydrogeology morphology/inducement area based on the result of the study which will be conducted by PEI.
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PROJECT DESCRIPTION FOR SCOPING
Proposed 1,700 MW Batangas Combined Cycle Gas Turbine Power Plant Project
Panasia Energy, Inc. Barangays Dela Paz Proper and Ilijan, Batangas City
Environmental
Environmental
Component Likely to Potential Impact Prevention/Mitigation/Enhancement Measures
Aspect
be Affected
of flooding/reduction in PEI shall implement necessary measures to conserve water and reduce
stream volumetric flow water usage.
Change in stream, lake
water depth
Depletion water
resources/ competition in
water use
Mobilization of Water Quality Degradation of Provision of containment structures and canals in the storage areas for
construction groundwater quality oil and the motor pool area
equipment and Return of contaminated cans/containers of hazardous materials such as
materials paints, thinners, wood preservatives and others to the supplier/producer
for treatment and safe disposal
Generation of Regular monitoring of groundwater quality
domestic waste
AIR
Mobilization of Meteorology/ Change in local climate PEI shall establish a buffer zone and native species shall be used for
Construction climatology and local temperature vegetation, as these would be expected to have good survival rate.
Equipment and Air Quality and Noise Degradation of Air Every main haul road shall be paved with concrete, bituminous
Materials Quality materials, hardcores or metal plates; keep the road clear of dusty
materials; spray the road with water or a dust suppression chemical so
as to maintain the entire road surface wet; and immediately before
leaving a construction site, every vehicle shall be washed to remove any
dusty materials from its body and wheels;
Where a vehicle leaving a construction site is carrying a load of dusty
materials, the load shall be covered entirely by clean impervious
sheeting to ensure that the dusty materials do not leak from the vehicle;
The working area of any excavation or earth moving operation shall be
sprayed with water or a dusty suppression chemical immediately before,
during and immediately after the operation so as to maintain the entire
surface wet;
Exposed earth shall be properly treated by compaction or by vegetation
planting within six (6) months after the last construction activity on the
construction site or part of the construction site where the exposed earth
lies;
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PROJECT DESCRIPTION FOR SCOPING
Proposed 1,700 MW Batangas Combined Cycle Gas Turbine Power Plant Project
Panasia Energy, Inc. Barangays Dela Paz Proper and Ilijan, Batangas City
Environmental
Environmental
Component Likely to Potential Impact Prevention/Mitigation/Enhancement Measures
Aspect
be Affected
Any stockpile of dusty material shall be either covered entirely by
impervious sheeting; placed in an area sheltered on the top and the
three (3) sides; or sprayed with water or a dust suppression chemical so
as to maintain the entire surface wet.
Regular monitoring of ambient air (TSP) quality.
Increase in ambient Scheduling certain high noise emitting works to more acceptable times
noise level of day
Use of the most environmentally acceptable equipment which is properly
maintained and silenced
Use of the least intrusive method of work
Proper instruction and supervision of staff
Acoustic screening
Defective equipment/parts with abnormal noise and/or vibration will be
either repaired replaced
Schedule use of equipment/machines emitting high noise like pile driver
during day time operation while, minimize use during night time
operation
All employees working on site will be provided with proper ear protectors
Conduct noise level monitoring
PEOPLE
Implementation of Local residents Increase income for Positive Impact
livelihood projects residents
Hiring of workers Local residents Increase in local Priority employment for qualified local residents without discrimination to
employment women
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PROJECT DESCRIPTION FOR SCOPING
Proposed 1,700 MW Batangas Combined Cycle Gas Turbine Power Plant Project
Panasia Energy, Inc. Barangays Dela Paz Proper and Ilijan, Batangas City
Environmental
Environmental
Component Likely to Potential Impact Prevention/Mitigation/Enhancement Measures
Aspect
be Affected
Foundation Stability Geology Subsidence and Structural monitoring of buildings/facilities especially after each
Liquefaction earthquake
Formulation of detailed Emergency Preparedness and Response Plan
Accidental oil spill Pedology Soil contamination Provision of oil spill kit on-site.
Regular monitoring of soil quality.
WATER
Generation of Water Quality Degradation of Installation of Oily Wastewater Treatment System that will efficiently treat
domestic waste groundwater quality oily wastewater
water Installation of STP to treat the domestic wastewater generated
Generation of oily Proper handling and storage of diesel, lubricants in covered areas with
wastewater and impermeable flooring and installation of proper bund walls
process wastewater Daily supervision of possible leaks or spillages in the fuel storage tanks
Provision of oil spill kit on-site.
Installation of wastewater treatment plant
AIR
Utilization of diesel Air Quality Degradation of Air Conduct ambient air quality monitoring and stack emissions testing
for fuel Quality
Use of diesel Noise Quality Increase in ambient Use of the most environmentally acceptable equipment which is properly
generator engines noise level maintained and silenced
Proper instruction and supervision of staff
Acoustic screening
It is advisable that electrically powered powered plant shall be preferred,
where practicable, to mechanically powered alternatives. If mechanical
powered plant will be used, it shall be fitted with suitable silencers and
mufflers
Defective equipment/parts with abnormal noise and/or vibration will be
either repaired or replaced
All employees working on site will be provided with proper ear protectors
Conduct noise level monitoring
PEOPLE
Waste Management Generation of Provision of STP, portalets and latrines, no litter signs, waste can
sewage/solid waste Applying the hierarchy of measures: Reduce, Segregate, Re-use,
Recycle and Dispose
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PROJECT DESCRIPTION FOR SCOPING
Proposed 1,700 MW Batangas Combined Cycle Gas Turbine Power Plant Project
Panasia Energy, Inc. Barangays Dela Paz Proper and Ilijan, Batangas City
Environmental
Environmental
Component Likely to Potential Impact Prevention/Mitigation/Enhancement Measures
Aspect
be Affected
Proper disposal of non-recyclable wastes through an accredited
contractor
Hiring of workers Population Change in population Priority hiring of qualified local residents in coordination with the City
(size, distribution) and host barangays
In-migration Training program and skill transfer for local residents
Social services Overburdening of public Priority hiring of qualified local residents
social services On-site medical clinic staffed by at least a doctor and a nurse
Provision of an ambulance
Health Introduction of disease Clean bill-of-health as a condition for employment
between migrant and Medical check-up shall be part of the CSR program of PEI to monitor
local workers the occurrence of unusual health problems that can be associated with
the proposed Project.
Provision of potable water, sanitary facilities and garbage bins for
workers
Provision of Medical clinic and a safety officer to monitor safe working
conditions
Provision of Medical/First Aid kits in all work places
Operation of the Local residents Increased social and Positive impact, no mitigation required
power plant economic financial
activity
Workers and Fire hazard Provision of fire suppression systems, fire detections systems, fire host
properties stations and portable fire extinguishers
ABANDONMENT PHASE
LAND
Decommissioning Pedology Soil contamination The Abandonment Rehabilitation Plan shall be followed and rendering
the Project area free of soil contamination
Terrestrial Ecology Increase biodiversity Positive impact, no mitigation needed
due to retention of
buffer zone
WATER
Disposal of waste Groundwater Quality Disposal of wastes may Proper disposal of wastes.
lead to possible impacts Collection of spills
from spills and
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PROJECT DESCRIPTION FOR SCOPING
Proposed 1,700 MW Batangas Combined Cycle Gas Turbine Power Plant Project
Panasia Energy, Inc. Barangays Dela Paz Proper and Ilijan, Batangas City
Environmental
Environmental
Component Likely to Potential Impact Prevention/Mitigation/Enhancement Measures
Aspect
be Affected
discharges of
contaminants affecting
groundwater quality
AIR
Air Quality and Noise Generation of noise Proper maintenance of vehicles
Generation of dusts Use of noise suppressors/mufflers
Limiting noisy activities during daytime
Watering during dismantling to minimize dusts
Conduct ambient air (TSP) and noise level monitoring
PEOPLE
Hiring of workers Local residents Increase in local Priority for qualified local residents
for demolition and employment during
abandonment abandonment
activities New skills developed for
decommissioning may
be marketable elsewhere
Loss of jobs/ Reduction in Six (6)-month notice prior to termination of contract to give ample time
employment employment to look for next employment
opportunities to include Effective management via consultation, planning and communications
the staff of local with affected workers
contractors with long- Financial support within a human resources plan
standing service
contracts with the
project, for example,
maintenance services,
site transport services
and franchised catering
companies.
Demographic Out migration of affected
project personnel to seek
work elsewhere
Decommissioning Local Community Nuisance Formulation and implementation of decommissioning impact
activities management plan
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PROJECT DESCRIPTION FOR SCOPING
Proposed 1,700 MW Batangas Combined Cycle Gas Turbine Power Plant Project
Panasia Energy, Inc. Barangays Dela Paz Proper and Ilijan, Batangas City
Environmental
Environmental
Component Likely to Potential Impact Prevention/Mitigation/Enhancement Measures
Aspect
be Affected
Decommissioning
activities may cause
local disturbance or
damage through
increased road traffic,
noise, etc.
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PROJECT DESCRIPTION FOR SCOPING
Proposed 1,700 MW Batangas Combined Cycle Gas Turbine Power Plant Project
Panasia Energy, Inc. Barangays Dela Paz Proper and Ilijan, Batangas City
Annex 1. Location Map of the Proposed 1,700 MW Batangas Combined Cycle Gas Turbine Power Plant Project
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PROJECT DESCRIPTION FOR SCOPING
Proposed 1,700 MW Batangas Combined Cycle Gas Turbine Power Plant Project
Panasia Energy, Inc. Barangays Dela Paz Proper and Ilijan, Batangas City
Annex 2. Impact Areas of the Proposed 1,700 MW Batangas Combined Cycle Gas Turbine Power Plant Project
15