The Ilijan power plant in Batangas, located south of Manila, with a capacity of 1,278 megawatts, is a significant asset being integrated into a joint venture by San Miguel Global Power, Aboitiz Power, and a unit of Manila Electric Co. This joint venture, valued at $3.3 billion, involves billionaire Ramon Ang collaborating with tycoons Sabin Aboitiz and Manuel Pangilinan to invest in an integrated liquefied natural gas (LNG) facility in Batangas.
As part of the agreement, San Miguel Global Power Holdings, the energy arm of San Miguel Corp led by Ang, will contribute two gas-fired power plants totaling 2,598 megawatts to the joint venture. This partnership also includes the acquisition of the LNG import and regasification terminal constructed by Linseed Field Corp, a division of Atlantic Gulf & Pacific. The terminal will supply the necessary fuel for the two power plants, which encompass the existing 1,278 megawatt Ilijan power plant and a new 1,320 megawatt combined cycle power facility set to commence commercial operations by the end of the current year.
The chairman of Aboitiz Power, Sabin Aboitiz, emphasized the significance of this investment for the Philippines, stating that economic development hinges on energy security. The country aims to reduce greenhouse gas emissions by 70% by 2030 and is strategically turning to natural gas and other clean energy sources to diminish its reliance on fossil fuels. Currently, over 40% of the Philippines' electricity needs are met by coal-fired power plants.
Ramon Ang, the chairman and president of San Miguel Power, highlighted the collaborative effort of three prominent power companies in ensuring the country's energy requirements while transitioning towards cleaner energy sources. This partnership signifies a substantial advancement in the Philippines' energy landscape, guaranteeing not only reliability but also cost-effective power for numerous Filipinos.
