MERALCO PowerGen Corp. (MGen), the power generation subsidiary of Manila Electric Co. (Meralco), said it expects to finalize the financial arrangements for its liquefied natural gas (LNG) project with Aboitiz Power Corp. (AboitizPower) and San Miguel Global Power Holdings Corp. (SMGP) by September.
“We are expecting that maybe by the end of September,” MGen President and Chief Executive Officer Emmanuel V. Rubio told reporters after a briefing on Monday, noting that they are awaiting approval from the Philippine Competition Commission (PCC).
In March, MGen entered into an investment agreement with AboitizPower’s subsidiary, Therma NatGas Power, holding 60% and 40% stakes, respectively, in Chromite Gas Holdings, Inc.
Chromite Gas plans to invest in two gas-fired power plants owned by SMGP: the 1,278-megawatt (MW) Ilijan power plant and a new 1,320-MW combined power facility.
MGen and AboitizPower signed a $3.3-billion landmark deal with SMGP, the power arm of San Miguel Corp., to launch an integrated LNG facility in Batangas.
Together with SMGP, the joint venture company will also invest in an LNG import and regasification terminal owned by Linseed Field Corp.
While awaiting PCC approval, Meralco is on standby for approval from the Energy Regulatory Commission (ERC) for its power supply agreements, which is “critical to the consortium.”
In June, the ERC released an order granting provisional approval to implement Meralco’s contract with South Premiere Power Corp. (SPPC), which won the bidding for the 1,200-MW power supply.
However, of the total, the ERC only allowed 910 MW to be covered, pending the commission’s decision on the 290 MW capacity bound by an earlier contract it previously authorized.
Meralco and SPPC filed a joint motion for partial reconsideration, which has yet to be resolved by the ERC.
SPPC, a subsidiary of SMGP, is the administrator of the natural gas-fired power plant in Ilijan, Batangas.
Meralco’s majority owner, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera
