Philippines' energy cos collaborate on $3.3bn LNG facility

Meralco PowerGen Corporation (MGen), Aboitiz Power Corporation (AP), and San Miguel Global Power Holdings Corp. (SMGP) have signed a $3.3bn deal to launch an integrated LNG facility in Batangas, Philippines, Aboitiz announced on March 1.

As part of the deal, MGen and AP will jointly invest in two of SMGP's gas-fired power plants—the 1,278 MW Ilijan power plant and a new 1,320 MW combined cycle power facility set to commence operations by the end of 2024. Additionally, the three companies, in collaboration, will invest in nearly 100% ownership of the LNG import and regasification terminal currently held by Linseed Field Corporation.

Upon completion, the integrated LNG facility is expected to contribute over 2,500 MW of generation capacity, significantly bolstering the Philippines' power supply and meeting the increasing energy demands of the nation.

“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,” said MGen chairman Manuel V. Pangilinan.

Sabin M. Aboitiz, AP Chairman, highlighted the importance of a balanced energy mix, stating, "Both LNG and renewables are needed to achieve a balanced energy mix and well-planned energy transition."

Ramon S. Ang, SMGP Chairman and President, said “For the first time, three leading power companies are working together to secure our country's energy needs while transitioning towards cleaner power sources.”

The Department of Energy's (DoE) Philippine Energy Plan underscores the importance of LNG in achieving the country's energy sustainability and security goals, aiming to increase natural gas's share in the power generation mix to 26% by 2040.

The Southeast Asian country received its first LNG cargo early last year.