Energy companies Meralco Power Gen Corp. (MGen), Aboitiz Power Corp. and San Miguel Global Power Holdings Corp. (SMGP) together are launching the country’s first and most expansive integrated liquefied natural gas (LNG) facility in Batangas.
The enterprise is valued at USD3.3 billion where MGen and Aboitiz Power jointly invest in two of SMGP’s gas-fired power plants including the 1,278-megawatt Ilijan power plant and a new 1,320 MW combined-cycle power facility expected to start operations by end-2024.
All three will also acquire the LNG import and regasification terminal of Linseed Field Corp. to receive, store and process LNG fuel for the power plants.
The collaboration is seen helping boost energy security and steer the country towards a cleaner more sustainable future while also making fuel for power generation competitively priced and affordable to consumers.
UBS AG served as financial adviser to MGen and Aboitiz Power in this transaction.
“This is a pathbreaking venture. 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. We are thrilled to have such reliable partners as we lay the foundation for a brighter, greener future,” said Manuel V. Pangilinan, MGen chairman, in a statement.
The parties said the collaboration will substantially augment the country’s power supply with over 2,500 MW of generation capacity once fully operational. The project is backed by advanced LNG storage and regasification capabilities
“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. Economic development is impossible without energy security, and this investment is a definitive step forward in that direction,” Sabin Aboitiz, Aboitiz Power chairman, said.
On the other hand, Ramon Ang, SMGP chairman and president, said that “for the first time, three leading power companies are working together to secure our country’s energy needs while transitioning towards cleaner power sources” which he also described as “a major leap forward.
