MANILA — In a landmark agreement set to reshape the Philippine energy sector, leading industry figures Sabin Aboitiz, Ramon Ang, and Manuel Pangilinan have announced a USD 3.3-billion investment aimed at significantly boosting the country's power supply with over 2,500 megawatts (MW) of clean energy capacity.
According to Philippines News Agency, Aboitiz Power Corp., Meralco PowerGen Corp. (MGen), and San Miguel Global Power Holdings Corp. (SMGP) will collaborate to construct the nation's first and largest liquefied natural gas (LNG) facility in Batangas.
Manila Electric Company (Meralco) Chairman and CEO Manuel Pangilinan expressed enthusiasm for the project, highlighting the venture as a transformative step towards a sustainable energy future and praising the alliance among major industry players. The strategic investment involves the acquisition of equity interest in Chromite Gas Holdings, Inc. (CGHI), with MGen acquiring a 60 percent stake and AboitizPower's Therma NatGas Power, Inc. (TNGP) purchasing 40 percent of the shares.
CGHI plans to channel investments into SMGP's 1,278-MW Ilijan power plant, in addition to a 1,320-MW combined cycle power facility and an LNG import and regasification terminal owned by Linseed Field Corp., both slated to start operations by year's end.
Sabin Aboitiz, Chairman of AboitizPower, emphasized the critical role of LNG in achieving a balanced energy mix and facilitating a thoughtful transition towards greener alternatives. He underlined the significance of this investment for the Philippines' energy security and economic development. AboitizPower's President and CEO, Manuel Rubio, added that the inclusion of LNG plants exemplifies a pragmatic approach to the country's energy transition, serving as a complementary solution to the variabilities of solar and wind power generation.
The agreement also foresees CGHI securing a 67 percent stake in both the Ilijan power plant and the combined cycle power facility. This initiative aligns with the Marcos administration's objective to elevate LNG's contribution to the Philippine power mix to 26 percent by 2040, recognizing LNG's lower greenhouse gas emissions compared to traditional fossil fuels and its role as a bridge to a future dominated by renewable energy sources.