Philippines nears comprehensive energy security with landmark LNG collaboration

The long-awaited aspiration of President Marcos, shared by the entire Filipino population burdened by frequent brownouts, is on the brink of becoming a reality: achieving comprehensive energy security in the country.

In a landmark move to address the energy woes that have perennially beset the country, three of the largest and most innovative firms in the country have joined forces to provide a clean solution. These firms—Aboitiz Power Corp., Meralco PowerGen Corp. (MGen) and San Miguel Global Power Holdings Corp. (SMGP)—are jointly launching the Philippines’ first and most expansive integrated liquefied natural gas (LNG) facility in Batangas.

The entire enterprise, valued at $3.3 billion, is aimed at boosting energy security and steering the country’s shift towards a cleaner, more sustainable future, as it is likewise designed to make energy competitively priced, affordable, and accessible to a broader base of Filipino consumers.

Under the agreement, AP and MGen 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.

Also, the three firms will invest together in almost 100 percent of the LNG import and regasification terminal owned by Linseed Field Corp.

All three companies will likewise acquire the LNG import and regasification terminal of Linseed Field Corporation, and use this 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.


Once fully operational, this joint effort among the three entities is projected to enhance the country’s power supply by an impressive 2,500 megawatts (MW) of generation capacity, supported by state-of-the-art LNG storage and regasification capabilities.

Such initiative will not only meet the country’s energy requirements but also support its environmental objectives by reducing greenhouse gas emissions.

This initiative supports the President’s goals for the country.

Moreover, it aligns perfectly with the comprehensive endeavor to vigorously promote the advancement of renewable energy in the nation, championed by Congressman Joey Salceda, the Chair of the House Ways and Means Committee, widely recognized as the “RE Expansion Champion” in the present legislative assembly.

Salceda has been advocating for expansion of renewable energy sources in the country, as well as having more RE power plants.

He is also advocating for the liberalization of the renewable energy sector to encourage foreign capital participation.

Salceda, who also holds the position of senior vice chairman in the House Committee on Constitutional Amendments, has underscored that his utmost focus as senior vice chair of the panel is “to promote the liberalization of the renewable energy sector, in line with the President’s directive to attain energy security.”

The AP-MGen-SMGP project also perfectly fits in the Philippine Energy Plan being driven by the Department of Energy (DOE), which has identified LNG as crucial for the country’s energy sustainability and security, aiming to boost natural gas’ share in the power generation mix to 26 percent by 2040.

Experts have characterized LNG as a crucial contributor to the reduction of greenhouse gas emissions, the fight against climate change, the enhancement of air quality, and the improvement of public health.

Boosting LNG as energy source contributes to attaining the Philippines’ own goal to significantly reduce greenhouse gas emissions by 70 percent by 2030.

Sabin M. Aboitiz, Chair of AP, said: “Both LNG and renewables are needed to achieve a balanced energy mix and well-planned energy transition. Above all, this is a big win for the Philippines and the people. Economic development is impossible without energy security, and this investment is a definitive step forward in that direction.” 

Manuel V. Pangilinan, Chair of MGen, commented: “This is a pathbreaking venture. Apart from transforming the energy landscape of the Philippines, 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.”

Ramon S. Ang, Chair and President of SMGP, added: “For the first time, three leading power companies are working together to secure our country’s energy needs while transitioning towards cleaner power sources. This represents a major leap forward for our energy future, ensuring not just reliability but also cost-efficient power for many Filipinos.”

The three firms intend to leverage their combined expertise and resources to guarantee the delivery of dependable and competitively priced energy while helping boost economic growth and environmental preservation for the country. 

Through the AP-MGen-SMGP initiative, as well as other RE development undertakings, and including RE expansion and liberalization as espoused by Cong. Salceda, the nation may finally look forward to a future with no brownouts, no disruptions of work and business due to power outage,
and no inconveniences to life due to non-availability of electricity; only secured supply of energy.

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