Businesses led by tycoons Manuel Pangilinan, Ramon Ang and Sabin Aboitiz have teamed up to launch the Philippines’ first and “most expansive” integrated liquefied natural gas (LNG) facility in Batangas, in a deal which values the entire enterprise at $3.3 billion.
According to San Miguel Global Power Holdings Corp. (SMGP), Meralco PowerGen Corp. (MGen) and Aboitiz Power Corp. (AP) will jointly invest in two of its gas-fired power plants — the 1,278-megawatt Ilijan power plant, and a 1,320-megawatt combined cycle power facility set to start operations this year.
The three parties will then invest in nearly 100% of Linseed Field Corporation’s LNG import and regasification terminal, which will be used to receive, store and process fuel for the two power plants.
“For the first time, three leading power companies are working together to secure our country’s energy needs while transitioning towards cleaner power sources,” SMGP chairman and president Ang said.
?“This represents a major leap forward for our energy future, ensuring not just reliability but also cost-efficient power for many Filipinos,” he added.
The partnership is set to add over 2,500 megawatts of generation capacity to the country’s power supply once fully operational, meeting the country’s energy requirements and providing support to its target to lower emissions.
This comes as the Department of Energy (DOE) aims to have renewable energy account for 50% of the generation mix by 2040. It also targets to have natural gas contribute 26% to the mix by then.
“Both LNG and renewables are needed to achieve a balanced energy mix and well-planned energy transition. Above all, this is a big win for the Philippines and the people,” AP chairman Aboitiz said.
“Apart from transforming the energy landscape of the Philippines, this symbolizes a milestone alliance among major players in the energy industry towards a more sustainable future,” MGen’s Pangilinan said.
National Economic and Development Authority (NEDA) secretary Arsenio Balisacan in September said the Philippines would need $103.6-billion or P5.8-trillion worth of investments in renewable energy projects to meet the target power generation mix by 2040.
Foreign investors or companies have been allowed to engage in the Philippine renewable energy sector after the Department of Energy (DOE) in November 2022 amended the implementing rules and regulations (IRR) of the Renewable Energy Act of 2008.
The administration is also looking at amending the Electric Power Industry Reform Act (EPIRA) to bring down the cost of electricity across the country.—RF, GMA Integrated News
