Meralco PowerGen Corporation, Aboitiz Power Corporation, and San Miguel Global Power Holdings Corp. Partners for Liquefied Natural Gas (LNG)

Meralco PowerGen Corporation (MGen), Aboitiz Power Corporation (AP), and San Miguel Global Power Holdings Corp. (SMGP) are opening the Philippines' first and largest integrated liquefied natural gas (LNG) project in Batangas.

This effort is expected to help strengthen energy security and steer the country toward a cleaner, more sustainable future, in keeping with the Marcos administration's drive for increased natural gas use in the country's energy supply.

Most importantly, this would make competitively priced and affordable power available to a larger number of Filipino consumers.
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In a deal valued at US$3.3 billion, MGen and AP will jointly invest in two of SMGP's gas-fired power plants—the 1,278 MW Ilijan power plant and a new 1,320 MW combined cycle power facility set to begin operations by the end of 2024—as well as nearly 100% of Linseed Field Corporation's LNG import and regasification terminal.

Additionally, all three companies will acquire Linseed Field Corporation's LNG import and regasification terminal. This will be utilized to accept, store, and process LNG fuel for the two power units, thereby integrating the local energy industry into the worldwide natural gas supply chain.

“This is a pathbreaking venture,” said MGen Chairman Manuel V. Pangilinan. “Apart from transforming the energy landscape of the Philippines, this symbolizes a milestone alliance among major players in the energy industry towards a more sustainable future. We are thrilled to have such reliable partners as we lay the foundation for a brighter, greener future.”

Powering Progress with Cleaner Energy

​Once fully operational, the collaboration will significantly increase the country's power supply with over 2,500 MW of generation capacity, supported by modern LNG storage and regasification capabilities. This initiative will not only meet the country's energy needs but will also help it achieve its environmental goals by drastically reducing emissions.

“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," Sabin M. Aboitiz, AP chairman said.

For his part Ramon S. Ang, SMGP Chairman and President, said “For the first time, three leading power companies are working together to secure our country's energy needs while transitioning towards cleaner power sources. This represents a major leap forward for our energy future, ensuring not just reliability but also cost-efficient power for many Filipinos."
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The agreement precisely coincides with the government's strategic strategy for the country's energy sector, which seeks to diversify energy sources through increased usage of cleaner natural gas.
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The Department of Energy's (DoE) Philippine Energy Plan identifies LNG as critical to the country's energy sustainability and security, with the goal of increasing natural gas's share of the power generation mix to 26% by 2040.
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LNG has substantial environmental benefits over traditional fossil fuels, helping to cut greenhouse gas emissions, battle climate change, improve air quality, and improve public health, making it a suitable transition fuel for a renewable energy future.

This move also accords with the Philippines' own objective of reducing greenhouse gas emissions by 70% by 2030.

The three power firms' collaboration demonstrates a shared commitment to innovation, dependability, and environmental responsibility in the energy sector.
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The collaboration ensures reliable and cost-effective energy distribution while also promoting economic growth and environmental protection.