Business Bayani PH

Three major Philippine power companies — Aboitiz Power Corp., Meralco PowerGen Corp. (MGen), and San Miguel Global Power Holdings Corp. (SMGP) — have signed a $3.3 billion deal to invest in clean energy, officials said on March 4.

The project will involve the construction of the country’s first and largest liquefied natural gas (LNG) facility in Batangas, adding 2,500 megawatts (MW) of generation capacity to the national grid.

“This deal signifies a significant collaboration among major players in the energy sector towards a more sustainable future,” said Manuel Pangilinan, chairman and chief executive officer of Manila Electric Company (Meralco).

The agreement involves the acquisition of a majority stake in Chromite Gas Holdings, Inc. (CGHI) by MGen and AboitizPower’s Therma NatGas Power, Inc.. CGHI, in turn, plans to invest in SMGP’s existing Ilijan power plant and a new 1,320-MW combined cycle power facility with an LNG import and regasification terminal.

“Both LNG and renewable energy are crucial for a balanced energy mix and a well-managed energy transition,” said Sabin Aboitiz, chairman of AboitizPower. “This investment represents a significant step towards ensuring energy security for the Philippines and its people.”

While acknowledging the importance of renewable energy sources, industry leaders emphasized the role of LNG as a “transition fuel.”

“LNG plants complement the variability of solar and wind power generation, maintaining the stability of the overall power system,” explained Manuel Rubio, president and CEO of AboitizPower.The project aligns with the Philippine government’s goal of increasing the share of LNG in the power mix to 26% by 2040. Compared to traditional fossil fuels, LNG offers lower greenhouse gas emissions, contributing to cleaner air and improved public health.Ⓒ