PH energy giants complete $3.3b LNG deal

The deal involves three of the biggest energy firms in the country.

Three major companies in the Philippines have announced the completion of their $3.3b partnership to build an integrated liquefied natural gas (LNG) facility.

In separate bourse filings, Manila Electric Co.’s Meralco PowerGen Corp. (MGen), San Miguel Corp.’s San Miguel Global Power Holdings Corp. (SMGP), and AboitizPower’s Therma NatGas Power Inc. (TNGP) said they have reached financial close for the deal.

Part of the partnership is MGen and TNGP, through Chromite Gas Holdings, Inc. (CGHI), owning a 67% stake in South Premiere Power Corp.  (SPPC), Excellent Energy Resources, Inc. (EERI) and Ilijan Primeline Industrial Estate Corp. (IPIEC).

SPPC operates the 1,278 megawatt Ilijan Combined Cycle Gas Power Plant, whilst EERI owns and operates the 1,320 MW combined cycle gas power plant being constructed. IPIEC owns the plant sites.

Aside from this, CGHI and SMGP also acquired the Batangas-based LNG import and regassification terminal owned by Linseed Field Corporation. As a result, MGen and TBGP will own 67% of SPPC, EERI, and IPIEC, whilst SMGP will own a 33% stake in the said companies.

The transaction was already approved by the Philippine Competition Commission.