Landmark power joint venture to cost $3.3 B

Energy powerhouses Meralco PowerGen Corp. (MGen), Aboitiz Power Corp. and San Miguel Global Power Holdings Corp. (SMGP) have forged a $3.3-billion deal to help boost the country's energy security and make affordable power accessible to more consumers.

- By RICHMOND MERCURIO

The three companies, led by tycoons Manuel Pangilinan, Ramon Ang and Sabin Aboitiz, are launching the country's first and most expansive integrated liquefied natural gas (LNG) facility in Batangas, a landmark development for the Philippine energy sector.

With over 2,500 megawatts (MW) of generation capacity once fully operational, it will substantially bolster the country's power supply.

As earlier reported by The STAR, MGen and AboitizPower will jointly invest in SMGP's two gas-fired power facilities, namely the 1,278-MW Ilijan power plant and a new 1,320-MW combined cycle power facility expected to start operations by the end of the year.

UBS AG served as the financial adviser to MGen and AboitizPower on the transaction.

Together with SMGP, the companies will invest in almost 100 percent of the LNG import and regasification terminal owned by Linseed Field Corp., a local unit of Atlantic, Gulf, and Pacific Co. (AG&P).