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Electric utilities

Sukhin Energy Defies Allegations of New Energy Deals Despite Court Injunction

Strategic Insights

— 2 min read

Sukhin Energy, Inc., a Ukraine-based company, asserts that its agreements with the Philippine government's energy firms, National Power Corporation, Philippine National Oil Company, and the Department of Energy, remain in effect despite court hurdles. The company claims that no new agreements have been signed between Sukhin Energy and the mentioned agencies since the signing of memoranda of understanding (MoUs) last year for energy projects, including a 2.5 megawatt synthesized gas station using coconut husks on the island of Masbate. Sukhin Energy is pushing for a sustainable and environment-friendly electricity source for Masbate's 600,000 residents and plans to utilize a waste product from an indigenous resource.

Key Takeaways:

  • Sukhin Energy has standing agreements with National Power Corporation, Philippine National Oil Company, and the Department of Energy for various energy projects, including a 2.5 megawatt synthesized gas station using coconut husks on the island of Masbate.
  • The project, which requires an investment of $7 million, is the first joint venture between the Philippines and Ukraine and will serve as a pilot project with 75-percent Ukrainian financing.
  • Sukhin Energy has signed a separate agreement with PNOC and DoE for the formation of a joint venture company, Segas Inc., to set up one mother compressed natural gas (CNG) filling station and two daughter filling stations in line with the government's Natural Gas Vehicle Program for Public Transport.
  • A writ of preliminary injunction issued by a regional trial court in Makati City prohibits Dr. Eugene Sukhin, formerly the company's chairman, and his representatives from entering into new agreements with the mentioned agencies.
  • Sukhin Energy asserts that any new transactions firmed up during the pendency of the case would be rendered illegal.
  • The company's agreement with the Philippine National Oil Company (PNOC), the Department of Energy (DoE), and Sukhin Energy, suggests that the joint venture company Segas Inc. will utilize CNG for transport sector development.
  • Sukhin Energy is one of the first responders to the government's call for new investments in the local transport sector.
  • The first pair of CNG mother-daughter stations was committed by Shell Philippines Exploration B.V. and Pilipinas Shell due for completion by the end of this month.

Statistics:

  • The investment required for the 2.5 megawatt synthesized gas station on the island of Masbate is $7 million.
  • The government's 7-year pilot phase of CNG utilization for the transport sector aims to deploy at least 200 buses running on natural gas this year.
  • The prevailing diesel price is hovering at P27 to P30 per liter.
  • The government is offering CNG at a cheaper price of P14.50 per liter.
  • Sukhin Energy's pilot project is seen to provide sustainable and environment-friendly electricity for Masbate's 600,000 residents.

Sources:

  • Sukhin Energy, Inc. statement via its legal counsel
  • The Philippine Star article dated [no date provided]

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