Aboitiz, MVP, Ramon Ang Come Together in P185-Billion Energy Project in Batangas
Three big conglomerates have joined hands in a major energy project seen to help boost energy security in the country steer the country toward a cleaner, more sustainable future.
Manny Pangilinan-chaired Meralco Power Gen Corp. Sabin Abitiz-led Aboitiz Power Corp., and San Miguel Global Power Holdings Corp., chaired by Ramon Ang, have come together to launch the Philippines’ first integrated liquefied natural gas facility in Batangas valued at $3.3 billion (P185 billion).
ALSO READ
Why Energy Shouldn't Compromise Sustainability, From the Chief of AboitizPower
AboitizPower Launches Its Own Electric Vehicle Fleet Program
According to the terms 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 which is expected to start operations by the end of 2024. All three companies will also invest in almost 100 percent and acquire the LNG import and regasification terminal owned by Linseed Field Corporation, which will be used to receive, store and process LNG fuel for the two power plants, helping to fully integrate the local energy sector into the global natural gas supply chain.
Backed by advanced LNG storage and regasification capabilities, the project will augment the country’s power supply with over 2,500 MW of generation capacity once fully operational. The collaboration will also not only meet the country's energy requirements but also support its environmental objectives by significantly lowering emissions. And, of course, it is seen to help boost the country’s energy security and make competitively priced and affordable power accessible to more Filipinos.
LNG offers significant environmental advantages over traditional fossil fuels that contribute to reduced greenhouse gas emissions. Widely seen as the ideal transition fuel to a renewable energy future, LNG also aligns with the Philippines' own goal to significantly reduce greenhouse gas emissions by 70 percent by 2030.
“Both LNG and renewables are needed to achieve a balanced energy mix and well-planned energy transition,” AP chairman Sabin M. Aboitiz said. “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."
“This is a pathbreaking venture,” said MGen chairman Manny Pangilinan. “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.”
“For the first time, three leading power companies are working together to secure our country's energy needs while transitioning towards cleaner power sources,” said SMGP chairman and president Ramon Ang. “This represents a major leap forward for our energy future, ensuring not just reliability but also cost-efficient power for many Filipinos."
