“Plans are only good intentions unless they immediately degenerate into hard work.” – Peter Drucker, Australian-American author
Last week, I had an opportunity to have a short interview with Mr. Cornelio Gonzales, president and chief executive officer (CEO) of Westfield Resources, LLC, a Houston, Texas-based energy company.
Gonzales was accompanied by Mr. Bill Dy of Cauayan, Isabela, who belongs to a political clan in Isabela province in northern Luzon.
I learned that his company has submitted a formal Letter of Intent to the office of General Manager Engr. Rez Contrivida signifying an intention to supply 60 megawatt of power to the Palawan Electric Cooperative (PALECO) using liquified natural gas (LNG).
Gonzales said his energy firm is willing to build a 60 to 100 MW capacity power plant in Puerto Princesa city to provide electricity.
Gonzales said his company is offering to operating on a no- capital expenditure term with PALECO. “Funding is always an issue when an electric cooperative wants to expand and produce electricity. So what we offer is at no Capex to the electric cooperatives. We will build and operate the power plant to no Capex to the electric coops, thereby increasing electricity production,” Gonzales explained.
Once a supply agreement is in place, Gonzales said they can immediately build within seven months the power plant which will give service for the electricity requirement to run the natural gas.
“Our power plant is designed to reach commercial operation within 6 months of contract effectiveness if you will use liquefied natural gas as fuel,” Gonzales pointed out.
The technology must be CAT, Cummins, MWM, Capstone, Wartsila or General Electric mobile gas turbines. The interconnection voltage and frequency shall be 13.8 kilo volt (kV) at 60 hertz (Hz). It has an availability guarantee of 92 percent, Gonzales explained.
On top of the no-Capex offered package to PALECO, Gonzales assured that it included the installation, minimal mobilization and de-mobilization; in addition to operation, balance of plant or BOP, operation and maintenance (O/M) throughout the duration of the contract and a long term supply of LNG fuel.
I understand from Gonzales that a normal cost in order to build a LNG power plant would require $1 million per mega watt and that his company has an investor partner to sustain the funding requirements.
So I asked PALECO general manager Engr. Rez Contivida on how he finds the investor Westfield Resources, LLC of Gonzales, he said they need to do due diligence about the company.
“We need to do it on the right process to avoid questions. Especially, the technical and financial aspect of the company Westfield must be presented first to board of directors,” Contrivida said.
