Three energy companies in the Philippines have joined forces to launch the country’s first integrated LNG facility in Batangas.
The project, valued at $3.3bn (184.74bn pesos), is a joint venture between Meralco PowerGen (MGen), Aboitiz Power (AP) and San Miguel Global Power (SMGP).
As part of the plan, the three companies will acquire the LNG import and regasification terminal of Linseed Field.
Linseed Field is a unit of Singaporean LNG company AG&P, recently bought by US investment company Nebula Energy.
The terminal will play a key role in the country's energy infrastructure, receiving, storing and processing LNG to fuel power plants.
MGen and AP are set to jointly invest in SMGP's gas-fired power plants including the 1.278GW Ilijan power plant and a new 1.32GW combined cycle power facility scheduled to commence operations by the end of 2024.
The combination of these plants with the LNG terminal is expected to integrate the Philippines' local energy industry with the global natural gas supply chain.
AP chairman Sabin Aboitiz 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."
The Department of Energy's Philippine Energy Plan has highlighted LNG as essential for the nation's energy sustainability and security.
It aims to increase natural gas' contribution to the power generation mix to 26% by 2040.
LNG is recognised for its environmental benefits such as reduced greenhouse gas (GHG) emissions, which support the fight against climate change and improve air quality.
The development of this integrated LNG facility is also in line with the Philippines' commitment to reducing GHG emissions by 70% by 2030.
