PCC Approves LNG Deal Between Meralco PowerGen, Aboitiz Power, and San Miguel Global Power

Philippine Competition Commission (PCC) has approved the joint acquisition of power facilities and a liquified natural gas (LNG) terminal by Meralco PowerGen Corporation (MGEN), Therma Natgas Power Inc. - Aboitiz Power (Therma), and San Miguel Global Power Holdings Corp. (San Miguel Power).

The transaction involves MGEN and Therma, through their joint venture Chromite Gas Holdings Inc. (Chromite), acquiring a 67% equity interest in South Premiere Power Corp. (SPPC), Excellent Energy Resources Inc. (EERI), and Ilijan Primeline Industrial Estate Corp. In addition, MGEN and Therma, through Chromite, along with San Miguel Power, will jointly acquire approximately 100% of Linseed Field Corp. (LFC), which operates the LNG terminal in Batangas City. As a result of these acquisitions, MGEN and Therma, through their 60/40 ownership of Chromite, will control 67% of SPPC, EERI, and Ilijan Primeline, while San Miguel Power retains a 33% stake in these three entities and gains a corresponding interest in LFC.

Meralco PowerGen Corporation (MGEN) is a leading power generation company in the Philippines key subsidiaries, Global Business Power (MThermal), MGEN Renewable Energy, Inc. (MGreen), and PacificLight, a modern and efficient Liquefied Natural Gas (LNG) facility in Singapore. It is the power generation arm of the Manila Electric Company (MERALCO), the largest private electric distribution utility in the Philippines.

Aboitiz Power Corporation (AP) was incorporated on February 13, 1998 as a holding company for the Aboitiz Group's investments in power generation and distribution as well as retail electricity and other related services. Ownership in the Company was opened to the public through an initial public offering of its common shares in July 2007.

AP's business operations are divided into four strategic business units namely, power generation, power distribution, retail electricity services, and distributed energy. The Company's power generation portfolio includes interests in both renewable and non-renewable generation plants. The Company holds all its investments in renewable energy through Aboitiz Renewables, Inc. (ARI) and non-renewable energy through Therma Power, Inc. (TPI). Both ARI and TPI are wholly-owned subsidiaries of AP.

​San Miguel Global Power (SMGP) is one of the largest power companies in the Philippines. Serving as the energy arm of San Miguel Corporation (SMC), San Miguel Global Power current capacity of 5,057 MW provides 24/7 power that supports the country’s energy needs. According to the Department of Energy’s EPIRA Report 2020, the power the Company produces is approximately 20% of the National Grid, 26% of the Luzon Grid, and 8% of the Mindanao Grid, as of December 31, 2023.

Aside from leading the power generation industry, San Miguel Global Power is also a strong player in the industry of power distribution, serving a diverse range of clients, from residential consumers to large industrial enterprises, ensuring reliable and sustainable energy solutions tailored to their unique needs. Additionally, we pioneered Battery Energy Storage Systems in the Philippines with 1,000 MWH target capacity. Upon completion, our battery storage network will be the largest in the country and among the largest in Southeast Asia.