According to separate statements by the firms, the Philippine Competition Commission (PCC) has approved the joint acquisition of two power facilities and a liquified natural gas (LNG) terminal by Meralco PowerGen (MGen), Therma Natgas Power (TNGP), a unit of Aboitiz Power, and San Miguel Global Power (SMGP).
The transaction involves the acquisition by MGen and TNGP, through Chromite Gas (CGHI), of a 67 percent equity interest in South Premiere Power (SPPC), Excellent Energy Resources (EERI), and Ilijan Primeline Industrial Estate (IPIEC).
Furthermore, CGHI and SMGP will jointly acquire 100 percent of Linseed Field (LFC), which operates the LNG terminal in Batangas City.
As a result of these acquisitions, MGen and TNGP, through their 60-40 stakes in CGHI, respectively, will own 67 percent of SPPC, EERI, and IPIEC, while SMGP retains a 33 percent stake in these entities and gains a corresponding interest in Linseed Field, the companies said.
The three companies did not provide further information,
Earlier this year, they announced the deal saying it is worth about $3.3 billion.
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, they said.
Philippines LNG imports
The operator of the LNG terminal Linseed Field is a unit of Singapore’s LNG firm AG&P.
The three power companies said the terminal 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.
AG&P’s unit AG&P LNG, which is now majority-owned by US 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 previously 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.
Aboitiz Power confirmed in a separate statement last week that the main players in the country’s gas-to-power industry are exploring interconnecting their pipeline infrastructure to share LNG imports.
According to the statement, the three power firms may join forces with First Gen to share LNG imports.
