Three of the country’s biggest conglomerates announced Tuesday the financial close for the $3.3-billion liquefied natural gas (LNG) partnership involving two gas-fired power plants and an LNG terminal.
Meralco PowerGen Corp. (MGEN), a wholly owned subsidiary of Manila Electric Co., together with San Miguel Global Power Holdings Corp. (SMGP) and Aboitiz Power Corp, through its subsidiary Therma NatGas Power Inc. (TNGP) separately disclosed the financial closure.
The transaction involved the joint investment by MGEN and TNGP, through Chromite Gas Holdings Inc. (CHI) of a 67-percent interest in South Premiere Power Corp. (SPPC), Excellent Energy Resources Inc. (EERI) and Ilijan Primeline Industrial Estate Corp. (IPIEC).
SPPC is the owner/operator of the 1,278-megawatt Ilijan combined cycle gas power plant, while EERI is the owner/operator of the 1,320-MW combined cycle gas power plant under construction. The Ilijan Primeline Industrial Estate Corp. is the owner of the plant sites of SPPC and EERI in Batangas.
SPPC, EERI and IEPC were previously wholly-owned subsidiaries of San Miguel Corp. As a result of the transactions, SMC’s power arm SMGP retains a 33-percent equity interest in SPPC, EERI and IEPC.
Meanwhile, the deal also involved Chromite’s acquisition and SMGP’s 67 percent and 32.98 percent, respectively, of Linseed Field Corp., the owner/operator of the import and regasification LNG terminal which will process, handle and deliver the LNG requirements of the power plants of SPPC and EERI.
MGEN president and chief executive Emmanuel Rubio said the company is focused on completing the natural gas plants to increase the company’s power generation portfolio.
“The team will focus on closing punch list items for Excellent Energy and the regas facilities. The third unit of EERI is still undergoing commissioning and we expect that to be completed within February. We are also completing the first on shore tank and starter constructing the second. After these, we can then look at efficiency improvements and work to further ensure reliability for both EERI and SPPC,” Rubio said.
Meralco said last week it would will draw from its P75-billion credit facility with BDO Unibank Inc., Bank of the Philippine Islands and Metropolitan Bank and Trust Co. to finance its acquisition of the stake in two gas-fired power plants and a liquefied natural gas (LNG) terminal.
The transaction among the parties was recently approved by the Philippine Competition Commission subject to certain conditions.
The PCC emphasized that while the transaction supports the country’s energy security, the imposed conditions are vital to maintaining a competitive market.
