MANILA, Philippines — Tycoons Manuel V. Pangilinan, Ramon Ang and Sabin Aboitiz have completed their $3.3-billion power venture to launch the country’s first and largest integrated liquefied natural gas (LNG) facility.
The deal involves Pangilinan’s Meralco PowerGen Corp. and Aboitiz-owned Therma Natgas Power Inc. (TNPI) jointly investing in gas-fired facilities under Ang-led San Miguel Global Power Holdings Corp. (SMGP).
The deal’s closing followed MGen and TNPI’s acquisition of a 67-percent equity interest in SMGP’s South Premiere Power Corp. (SPPC), Excellent Energy Resources Inc. (EERI) and Ilijan Primeline Industrial Estate Corp. (IPIEC).
MGen and TNPI acquired the assets through their joint venture, Chromite Gas Holdings Inc. (CGHI).
SPPC operates the 1,278-megawatt Ilijan combined cycle gas power plant, while EERI owns the 1,320-MW CCGPP that is under construction.
IPIEC, meanwhile, is the owner of the plant sites of SPPC and EERI.
Following the transaction, SMGP is left with a 33-percent stake in the three entities.
CGHI and SMGP also completed the buyout of Linseed Field Corp., the owner and operator of the import and regasification LNG terminal in Batangas.
The terminal processes, handles and delivers the LNG requirements of the power plants of SPPC and EERI.
Late last year, the energy giants secured the approval from the Philippine Competition Commission for this deal, a landmark development aimed at ensuring energy security in the country.
MGen is the power generation unit of power distributor Manila Electric Co., while SMGP is the energy arm of conglomerate San Miguel Corp.
Aboitiz Power Corp., which holds the power business of the Aboitiz Group, owns 100 percent of TNPI.
“This partnership highlights the shared vision of MGen, AboitizPower and SMGP to address the growing energy needs of the Philippines while promoting transparency, fairness and long-term sustainability in the energy sector,” the companies said.
MGen president and CEO Emmanuel Rubio told The STAR the parties are on track to complete the construction of the power plant under EERI.
“Two units of Excellent Energy are already in commercial operations. The third unit is expected to be on commercial operation by mid-February,” Rubio said.
Each unit of the power plant has a capacity of 425 MW.