Power companies Meralco PowerGen, Aboitiz Power, and San Miguel Global Power have teamed up on an LNG-to-power project in the Philippines worth about $3.3 billion.
According to a joint statement, 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.
Additionally, all three companies will acquire the LNG import and regasification terminal of Linseed Field.
This will be used to receive, store and process LNG fuel for the two power plants, thus fully integrating the local energy sector into the global natural gas supply chain, the statement said.
Linseed Field is a unit of Singapore’s LNG firm AG&P.
AG&P’s unit AG&P LNG, which is now majority owned byUS investment and asset management firm, Nebula Energy, is the operator of the first LNG import and regasification terminal in the Philippines, called the Philippines LNG (PHLNG) import terminal located in Batangas Bay.
In April last year, AG&P kicked off commissioning activities at the LNG import terminal following the arrival of the 137,500-cbm FSU Ish at the terminal’s jetty in Batangas Bay.
AG&P previously said that San Miguel uses regasified LNG from this plant to power its Ilijan gas-fired power plant, one of the largest in the country, to serve Luzon, the most populous region in the Philippines.
This new collaboration “will substantially augment the country’s power supply with over 2,500 MW of generation capacity once fully operational, backed by advanced LNG storage and regasification capabilities,” the three power firms said in the statement.
This effort will not only meet the country’s energy requirements but also support its environmental objectives by “significantly” lowering emissions, they said.
The Department of Energy’s (DoE) Philippine energy plan 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 percent by 2040, the statement said.
The Philippines has several LNG import facilities on the table as the Malampaya gas field becomes less reliable in producing and providing sufficient fuel supply for the country’s existing gas-fired power plants.
Besides AG&P’s terminal, First Gen also launched its Batangas FSRU-based facility last year.
