MGen targets to seal $3.3 billion LNG deal by September

MANILA, Philippines — Pangilinan-led Meralco PowerGen Corp. (MGen) is on track to seal a landmark $3.3-billion trifecta deal by September to launch the country’s first and largest integrated liquefied natural gas (LNG) facility.

According to MGen president and CEO Emmanuel Rubio, they are setting their sights on achieving a “financial close by end-September.”

As first reported by The STAR, the deal involves MGen and Aboitiz Power Corp. teaming up to invest in two gas-fired power plants under Ramon Ang’s San Miguel Global Power Holdings Corp.

These are the 1,278-megawatt (MW) Ilijan power plant and a new 1,320-MW combined cycle power facility expected to start operations by the end of the year.

Rubio said the deal is still undergoing approval from the Philippine Competition Commission (PCC) and that a notice of sufficiency has already been issued to them.

“We expect to get the approval probably by around September, if ever, but we don’t see any issues with receiving the approval,” he said.

Rubio noted that the regulatory approval could be pivotal in deciding whether they would pursue expansion of the Ilijan Phase 2 plant or if “the first phase is actually enough.”

The Ilijan Phase 2 plant, eyed for up to 1,800-MW of capacity, is operated by San Miguel’s Excellent Energy Resources Inc.

The PCC approval, Rubio said, would serve as the “main trigger for us to take over or for the joint venture to actually commence.”

The multi-billion-dollar LNG deal between three of the country’s top power firms would augment the Philippines’ power supply with over 2,500 MW of generation capacity once fully operational.

This investment is expected to help meet the country’s energy requirements and support its environmental goals by significantly reducing carbon emissions.