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THE government will rehabilitate the Agus-Pulangi power plants in Mindanao and construct a liquefied natural gas (LNG) facility to ensure stable power supply in the country before the Malampaya Deepwater Gas-to-Power plant’s gas reserves are used up by 2024, the Department of Finance (DoF) said on Tuesday.

In a statement, Finance Secretary Carlos Dominguez 3rd said the upgrading or rehabilitation of the five Agus-Pulangi hydropower facilities in Lanao del Norte and Bukidnon provinces would be done in phases. The first stage of the rehabilitation will be included in the second basket of projects that China may possibly finance.

The plants, supposed to generate a combined 900 megawatts, are currently operating at 60 percent of their capacities.

Approximately P54 billion ( about $ 1.07 billion) is needed to fix AgusPulangi, increase their individual capacities by an average of 10 percent and extend their life by an additional 30 years.

National Power Corp. (Napocor) President Pio Benavidez earlier said the Agus 6 plant would be rehabilitated first, as it is the oldest and has the biggest output, followed by Agus 2 and 7.

Fixing units 3 to 5 of Agus 6 will cost about $172.5 million; Agus 2, $207 million; and Agus 7, $62.10 million.

Once repaired, Agus-Pulangi is expected to generate more than 1,000 megawatts.

Dominguez also said the government was talking to potential Japanese investors to supply LNG receiving stations as part of the integrated LNG facility that the Department of Energy (DoE) and the Philippine National Oil Co. (PNOC) are planning to build.

Constructing the hub is expected to cost $2 billion, according to DoE.

“By the mid-2020’s, when we are going to run out of Malampaya reserves, we are ready with our LNG facilities,” Dominguez said.

The Malampaya gas facility, off Palawan province, supplies up to 50 percent of Luzon’s energy needs.