MANILA, Philippines – The Philippines’ richest tycoons are setting aside business rivalry to team up for the country’s first and “most expansive” integrated liquefied natural gas (LNG) facility in the province of Batangas valued at $3.3 billion (P185.2 billion).

Manny Pangilinan’s Meralco PowerGen Corporation (MGen) and Sabin Aboitiz’s Aboitiz Power will jointly invest in Ramon Ang’s San Miguel Global Power Holdings Corporation’s gas-fired power plants, namely the 1,278-megawatt Ilijan power plant, and a new 1,320-megawatt combined cycle power facility.

The tycoons will likewise invest in almost 100% of the LNG import and regasification terminal owned by Linseed Field Corporation, which are currently owned by the local office of Singaporean LNG firm Atlantic, Gulf & Pacific Co. The facility will be used to receive, store, and process LNG fuel for the two power plants.

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“For the first time, three leading power companies are working together to secure our country’s energy needs while transitioning towards cleaner power sources,” Ang said in a statement on Sunday, March 3.

The three said the deal would help boost the country’s energy security, which is “competitively priced and affordable to a broader base of Filipino consumers.”

“This is a pathbreaking venture. Apart from transforming the energy landscape of the Philippines, this symbolizes a milestone alliance among major players in the energy industry towards a more sustainable future,” said Pangilinan. (READ: San Miguel confirms Ramon Ang’s investment in Manny Pangilinan’s MPIC)

Once operational, it would have over 2,500 megawatts of generation supply, backed by “advanced LNG storage and regasification capabilities.”

Natural gas is touted as a “bridge fuel” to aid countries transition to cleaner sources of power. The Department of Energy aimed to boost the share of natural gas in the power generation mix to 26% by 2040.

At least seven LNG terminals are expected to be built along the coasts of Luzon.

A report by the Philippine Center for Investigative Journalism earlier pointed out that most of the proponents have long been in the power industry. – Rappler.com

$1=P56.11