An American energy corporation has proposed a $25 million natural gas power plant project to address Occidental Mindoro’s decades-long power crisis, provincial officials announced.
Rise Capital Group Nash Oil, Gas, and Power Inc. (RCNO), led by Chairman Brent Franklin and UN Ambassador Carey Nash, presented the Occidental Mindoro Natural Gas Infrastructure Development Project to Governor Eduardo Gadiano at the Capitol, signalling a potential breakthrough for the chronically power-starved island province.
RCNO has indicated readiness to proceed with project launch and mobilization immediately upon receiving government approval, with initial feasibility studies and environmental assessments expected to commence within months of regulatory clearance.
The project envisions three modular natural gas power generation facilities with 5-15 megawatt capacity each in Mamburao, Sablayan, and San Jose, which would collectively generate up to 50 megawatts – exceeding the province’s current 32-megawatt demand.
“Number one is to bring the price down for the people. Secondly, to create sustainable power. Imagine not having 20-hour brownouts daily,” Nash told provincial officials. “Natural gas is inherently cheaper than diesel—it’s just cheaper.”
Occidental Mindoro has suffered from acute power shortages for decades, with residents experiencing electricity for merely four hours per day in 2023.
The province remains isolated from the main Luzon grid, relying on expensive diesel generators that have made electricity costs prohibitive for many residents.
The Department of Energy reported in May 2024 that average electricity rates in the Philippines range from P5.93 per kilowatt-hour to P19.01 per kilowatt-hour, making the Philippines one of the countries with the highest electricity costs in Southeast Asia.
As of 2024, the country’s electricity prices stood at Php 9.86 per kilowatt-hour (kWh), positioning the Philippines as having power prices among the highest in ASEAN, next to Singapore.
For isolated provinces like Occidental Mindoro and Oriental Mindoro, costs are typically much higher due to dependence on diesel generation and limited transmission infrastructure.
The proposed natural gas project comes as the National Grid Corporation of the Philippines (NGCP) continues to work on connecting Mindoro to the main Luzon grid.
NGCP has submitted an application for provisional approval for its multi-billion peso transmission project, designed to connect the transmissions of Batangas and Mindoro.
The Batangas-Mindoro Interconnection Project (BMIP), initially targeted for completion in September 2027, received provisional approval from the Energy Regulatory Commission (ERC) in February 2023 for P14.03 billion.
The project involves laying down submarine cable, installation of overhead transmission lines and development of substations.
The RCNO proposal includes constructing an underwater marine pipeline from Batangas across the Verde Island Passage to Abra de Ilog in Occidental Mindoro, with onshore pipelines following the Mindoro West Coastal Road.
The company plans to establish barangay-level gas distribution systems providing residential and commercial access to natural gas for cooking and other applications.
“We believe there is an abundance of natural gas here,” Franklin said. “By integrating pipelines and infrastructure along the highway, we can deliver small taps to each of these villages and essentially create microgrid power sources.”
The project is a joint venture between RCNO, Infratechnik International Ventures and Development Corporation, and Emperium Electric Power Generation Services under the government’s public-private partnership (PPP) program.
The Philippines holds 3 trillion cubic feet (Tcf) of proven gas reserves, ranking #47 in the world and accounting for about 0.050% of the world’s total gas reserves.
The Malampaya gas field, discovered in 1991, became the largest gas discovery in the country with proven reserves of 2.7 to 3.2 Trillion cubic feet of gas (Tcf).
Mindoro possesses abundant energy resources, such as but not limited to hydro, wind, solar and natural gas, according to regional development assessments, though comprehensive geological surveys for natural gas exploration in the province remain limited.
Recent exploration activities across the Philippines have identified hydrocarbon potential.
The Visayan Basin discovered the Calauit and Calauit South oil fields, with an estimated reserve of 5.5 to 6.1 million barrels of oil (MMbbls), while estimated 9.42 billion cubic feet of natural gas reserves were found, with up to 6.6 billion cubic feet of recoverable gas in recent discoveries.
The Mindoro natural gas project promises enormous economic benefits for Occidental Mindoro.
RCNO estimates 1,000 workers will be needed for power plant construction, with another 3,000 indirect jobs expected.
“A lot of the equipment, infrastructure, and materials will be imported from around the world, but we’re hoping to build our labor force locally,” Franklin said. “We also plan to implement a revenue-sharing model.”
The company noted that natural gas is a cleaner alternative to coal, which remains widely used in Philippine power generation.
“This is the cleanest fuel in the world. It’s better than coal, which is still being used in the Philippines,” Nash said.
Governor Gadiano welcomed the proposal but stressed the need for proper coordination with the Occidental Mindoro Electric Cooperative (OMECO), the province’s electricity distributor.
“I told them to coordinate with OMECO since OMECO is the distributor. If they’re going to supply electricity, they need to have a Power Purchase Agreement (PPA) with OMECO,” Gadiano said.
RCNO officials indicated they await government approval to proceed with project implementation.
“What we need is proper planning, a thorough feasibility study, coordination, collaboration, and synergy with the local government units,” Nash said.
The Philippines’ fast-growing economy is matched by its increasing energy demands.
With limited domestic gas resources, LNG imports will be critical to the Philippines reducing its current dependence on coal.
Natural gas is considered a transitional fuel in the country’s shift toward renewable energy sources.
Image: courtesy of Earth Science Australia (used for illustration purposes only)
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