Three tycoons sign $3.3-billion energy deal

Three tycoons sign $3.3-billion energy deal

In a surprise move, the country’s three power giants have forged a $3.3-billion (P184.89 billion) deal to jointly launch the Philippines’ “first and most expansive” liquefied natural gas (LNG) facility in Batangas province to boost energy security and promote “cleaner” energy.

Meralco PowerGen Corp. (MGen), Aboitiz Power Corp. and San Miguel Global Power Holdings Corp. (SMGP) announced their landmark agreement on Sunday morning.

“For the first time, three leading power companies are working together to secure our country’s energy needs while transitioning toward cleaner power sources,” SMGP chair and president Ramon Ang said in a statement. “This represents a major leap forward for our energy future, ensuring not just reliability but also cost-efficient power for many Filipinos,” he added.

Under the deal, MGen, led by businessman Manuel Pangilinan as chair, and AboitizPower will invest in SMGP’s 1,278-megawatt (MW) Ilijan gas-fired power plant and a new 1,320-MW facility slated for completion by the end of the year.

The three companies will then acquire nearly 100 percent of the LNG import and regasification terminal owned by Linseed Field Power Corp., a local unit of global infrastructure firm Atlantic, Gulf & Pacific Co. that received the country’s first LNG cargo delivery in April 2023.

According to the companies, the facility will be used to receive, store and process LNG for the two power plants that supply electricity to the main island of Luzon.

Swiss banking firm UBS AG served as the financial adviser to MGen and AboitizPower for the transaction, according to power utility giant Manila Electric Co. (Meralco).

Additional power supply

“This is a pathbreaking venture,” Pangilinan said. “Apart from transforming the energy landscape of the Philippines, this symbolizes a milestone alliance among major players in the energy industry toward a more sustainable future.”

It is also meant to support the Marcos

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