The main power utility PPC is seeking to restrict its fuel costs at power stations through the establishment of new and improved natural gas purchase agreements.
As noted in its annual report for 2017, the power utility launched this cost-cutting initiative last year by inviting traders to place offers for new three-year LNG purchase agreements.
Already maintaining a purchase agreement with DEPA, the natural gas corporation, PPC is looking to diversify its sources as a means of reducing purchase costs. Natural gas pipeline and LNG supply options are both being considered.
The power utility is also striving to reduce its diesel purchase costs and lower fuel transportation costs to its power stations on the islands.
The launch of new island interconnections, enabling the closure of some of the power utility’s high-cost conventional power stations operating on islands, is expected to favorably impact PPC’s financial results.