MANILA, Philippines — A much-needed energy boost is on the horizon, as the power venture between the country’s industry giants gears up to deliver 2,500 megawatts (MW) of gas supply by month’s end.
Meralco PowerGen Corp. (MGen) of tycoon Manuel V. Pangilinan expects all three units of Excellent Energy Resources Inc. (EERI)’s gas-fired power plant in Batangas to operate at full capacity this month.
“So by the end of May, 2,500 MW of gas capacity will be available,” MGen president and CEO Emmanuel Rubio said in a recent interview.
Similarly, the first onshore liquefied natural gas (LNG) storage facility in the Philippines is also on track for completion this month, Rubio said.
MGen, along with San Miguel Global Power Holdings Corp. (SMGP) and Aboitiz Power Corp., owns EERI and South Premiere Power Corp. (SPPC), which operates another gas-fired facility.
SMGP is the energy arm of tycoon Ramon Ang’s San Miguel Corp., while AboitizPower holds the power business of the Aboitiz Group.
According to Rubio, the joint venture is still awaiting the issuance of a provisional authority to operate (PAO) for EERI’s Unit 3 before it can begin commercial operations.
“We have yet to receive the PAO from the Energy Regulatory Commission for the third unit. For the first two, we got them already,” he noted.
SPPC and EERI implemented a scheduled shutdown in March to carry out vital mechanical work at the Batangas terminal of Linseed Field Corp., which is also owned by the joint venture.
The move was necessary to complete the onshore storage tank, which will hold LNG supplies to fuel the gas plants.
Further, the joint venture has signed a 10-year sale and purchase agreement with Singapore-based Vitol Asia Pte. Ltd. for LNG supply, which will be delivered to the Batangas terminal.
Under the deal, Vitol will supply up to 800,000 metric tons of LNG annually, starting this year.
“It is a significant step toward meeting the country’s growing energy demands while ensuring a sustainable and stable energy future,” said Yari Miralao, president and CEO of both EERI and SPPC.
In January, MGen, SMGP and AboitizPower sealed their $3.3-billion power venture to launch the first and largest integrated LNG facility in the Philippines.
The deal, first reported by The STAR, is a landmark development envisioned to bring down power costs.