Revolutionizing Energy: The Philippines' First Integrated LNG Facility

SOURCE: ABOITIZ POWER

In a historical milestone for the Philippines' energy sector, Meralco PowerGen Corporation (MGen), Aboitiz Power Corporation (AP), and San Miguel Global Power Holdings Corp. (SMGP) are pioneering the establishment of the nation's first comprehensive integrated liquefied natural gas (LNG) facility in Batangas. This game-changing initiative is anticipated to enhance energy security while propelling the nation towards a greener, more sustainable future. 

The extensive LNG facility is in synchronization with the Marcos administration's advocacy for a significant increase in the utilization of natural gas in the nation's energy mix. The resulting impact of this initiative is not just limited to environmental benefits, but it also paves the way for affordable power to be within reach of a larger demographic of Filipino consumers.

In a business deal valued at an impressive 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. The latter is projected to commence operations by the end of 2024. In conjunction with SMGP, the two corporations will also invest in almost 100% of the LNG import and regasification terminal owned by Linseed Field Corporation. 

Furthermore, all three companies are set to acquire the LNG import and regasification terminal of Linseed Field Corporation. This terminal will be instrumental in the receipt, storage, and processing of LNG fuel for the power plants, thus successfully integrating the local energy sector into the global natural gas supply chain.

"This is a pathbreaking venture," declared MGen Chairman Manuel V. Pangilinan. "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.”

The collaboration will significantly supplement the country's power supply with over 2,500 MW of generation capacity once fully functional, backed by advanced LNG storage and regasification capabilities. This endeavor will serve to meet the country's energy needs and support its environmental objectives by substantially reducing emissions.

"Both LNG and renewables are needed to achieve a balanced energy mix and well-planned energy transition," stated Sabin M. Aboitiz, AP chairman. "Economic development is impossible without energy security, and this investment is a definitive step forward in that direction."

"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 Ramon S. Ang, SMGP Chairman and President. "This represents a major leap forward for our energy future, ensuring not just reliability but also cost-efficient power for many Filipinos."

The collaboration among the three power companies represents their shared commitment to innovation, reliability, and environmental stewardship in the energy sector. This move aligns perfectly with the Department of Energy's (DoE) Philippine Energy Plan which has identified LNG as crucial for the country's energy sustainability and security, aiming to boost natural gas's share in the power generation mix to 26% by 2040.

LNG offers significant environmental benefits over traditional fossil fuels, contributing to a reduction in greenhouse gas emissions, combating climate change, improving air quality, and enhancing public health. It is the ideal transition fuel to a renewable energy future, aligning with the Philippines' own goal to significantly reduce greenhouse gas emissions by 70% by 2030. By leveraging their combined expertise and resources, this collective venture guarantees the delivery of dependable and competitively-priced energy while helping boost economic growth and environmental preservation.