CEBU CITY — The Bogo City Government expects to earn P3-P4 million from the operation of the 1.5-megawatt natural gas plant in Barangay Libertad, which will be inaugurated and will start operation on October 15.

Bogo City Mayor Celestino “Junnie” Martinez Jr. said natural gas, which is a cleaner alternative energy source, will be sold directly to the Cebu Electric cooperative (Cebeco) 2, so the city cannot collect sales tax.

Martinez said the Bogo City Government can only collect real estate tax and business permit fees from the plant since its income will be shared between the National Government and the energy developer, Forum Exploration Inc., which belongs to Forum Energy of the United Kingdom.

The exploration for natural gas in Barangay Libertad, Bogo City in northern Cebu started in 2005, but it was only in January 2010 that Forum Exploration, the Department of Energy (DOE) and the mayor successfully conducted the flaring or burning of natural gas at the exploration field as a way to test its commercial prospects.

Forum Energy’s operation is up to the well head, while the conversion of the natural gas to power and the transfer of the power to the Cebeco 2 grid will be the responsibility of Manila-based Desco Consultants Inc.

”The plant is expected to be finished this month. The electricity will be sold to Cebuanos. The additional capacity might be small, but still significant in the sense that it’s a cheaper alternative to fossil-based fuel,” said DOE 7 Director Antonio Labios.

He also said the exploration for natural gas will continue in the barangay while the plant operates. (PNA)

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