MVP, Gokongwei groups seek more power projects

MANILA, Philippines - JG Summit Holdings of the Gokongwei Group and Pangilinan-led Manila Electric Co. (Meralco) are open to entering into more joint venture projects in the power sector.

“We still have to sit down with them. We’re prepared to partner with various companies including JG but we haven’t talked about it,” said Meralco president Oscar Reyes.

 JG Summit bought the 27 percent stake of San Miguel Corp. in Meralco for P72 billion, resulting in the appointment of John Gokongwei Jr. and Lance Gokongwei in Meralco’s board of directors, replacing SMC president Ramon Ang and director Estelito Mendoza.

Meralco chairman Manuel V. Pangilinan said the Gokongweis already attended their first Meralco board meeting last week.

“We’ve had our first meeting with them,” Pangilinan said.

For now, the partnership between the two MVP, Gokongwei from B-13 companies is focused on a power supply deal for JG Summit’s planned naphtha and polyethylene facility in Batangas, which is expected to open this year.

“They have a requirement for their plant in Batangas. They want to be connected to the grid so we’re building out the connectivity to the grid from their plant,” said Meralco senior vice president Al Panlilio and head of Customer Retail Services.

Panlilio said this is a cheaper option for JG. Otherwise, it would have to generate its own power, which could be costly because of rising diesel prices.

“I think they feel that it’s going to be cheaper for them if they’re connected to the grid. It would generate more savings…I think it is also more reliable power and better power quality,” Panlilio said.

As part of the connectivity project, Meralco would be building a 69-kilovolt transmission line, spanning 15 kilometers.

“They would be able to source power from Meraco. They can connect to the grid,” Panlilio said.

He said the target is to have the lines ready by the fourth quarter of the year.