In a groundbreaking development for the Philippines’ energy landscape, Meralco PowerGen Corporation (MGen), Aboitiz Power Corporation (AP), and San Miguel Global Power Holdings Corp. (SMGP) are spearheading the country’s inaugural and most extensive integrated liquefied natural gas facility in Batangas.
This pioneering initiative is poised to fortify energy security and propel the nation towards a cleaner, more sustainable future, aligning with the Marcos administration’s agenda to incorporate more natural gas into the country’s energy portfolio. Crucially, it aims to democratise access to competitively priced and affordable power, benefiting a broader spectrum of Filipino consumers.
In a landmark agreement valuing the entire venture at US$3.3 billion, MGen and AP will collaboratively 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 late 2024. Additionally, in conjunction with SMGP, they will invest in nearly 100 percent ownership of the LNG import and regasification terminal owned by Linseed Field Corporation.
Furthermore, all three entities will acquire Linseed Field Corporation’s LNG import and regasification terminal, crucial for receiving, storing, and processing LNG fuel for the aforementioned power plants. This move effectively integrates the local energy sector into the global natural gas supply chain.
“This marks a transformative endeavour,” remarked MGen Chairman Manuel V. Pangilinan. “Beyond reshaping the Philippines’ energy landscape, it signifies a landmark alliance among key industry players towards a more sustainable future. We are privileged to have such steadfast partners as we pave the way for a brighter, greener tomorrow.”
Empowering Progress through Clean Energy
The collaboration promises to substantially augment the nation’s power capacity, boasting over 2,500 MW of generation potential once fully operational, supported by advanced LNG storage and regasification capabilities. Beyond meeting energy demands, this initiative underscores a commitment to environmental stewardship by significantly reducing emissions.
“Both LNG and renewables are indispensable for achieving a balanced energy mix and a well-planned energy transition. Above all, this is a significant victory for the Philippines and its people. Economic progress hinges on energy security, and this investment represents a definitive stride in that direction,” stated Sabin M. Aboitiz, AP chairman.
Ramon S. Ang, SMGP chairman and president, echoed similar sentiments, saying, “For the first time, three leading power companies are collaborating to address our country’s energy needs while transitioning to cleaner power sources. This marks a monumental leap forward for our energy future, ensuring not only reliability but also cost-efficient power for countless Filipinos.”
Aligned with the government’s strategic vision for the energy sector, the agreement perfectly reflects efforts to diversify energy sources, prioritising cleaner natural gas.
The Department of Energy’s Philippine Energy Plan underscores LNG’s pivotal role in the nation’s energy sustainability and security, with the aim of elevating natural gas’s share in the power generation mix to 26 percent by 2040.
LNG offers notable environmental advantages over conventional fossil fuels, contributing to reduced greenhouse gas emissions, combating climate change, enhancing air quality, and promoting public health, positioning it as a transitional fuel towards a renewable energy future.
This initiative is also in sync with the Philippines’ target to slash greenhouse gas emissions by 70 percent by 2030.
The collaborative effort among the three power giants epitomises a shared dedication to innovation, reliability, and environmental stewardship in the energy sphere.
By pooling their collective expertise and resources, the joint venture assures the provision of reliable and competitively priced energy, thus bolstering economic prosperity while safeguarding the environment.
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