MGen, Aboitiz take over Chromite Gas Holdings

March 7, 2024 | 12:00am

MANILA, Philippines — Pangilinan-led Meralco PowerGen Corp. (MGen) has partnered with Aboitiz-owned Therma NatGas Power Inc. (TGNP) to take over Chromite Gas Holdings (CGHI) as part of a plan to launch the country’s first and most expansive .

Under the investment agreement, MGen will acquire 60 percent interest, while the subsidiary of Aboitiz Power Corp. will purchase 40 percent of CGHI.

MGen is a wholly owned subsidiary of Manila Electric Co. (Meralco) with a diversified power generation portfolio, while TGNP is wholly owned by Aboitiz Power Corp through Therma Power Inc.

Both companies are taking over CGHI, which is expected to invest in the 1,278-megawatt (MW) combined Ilijan power plant and a new 1,320MW combined cycle power facility owned by San Miguel Global Power Holdings Corp. (SMGP).

The STAR earlier reported that tycoons Manuel V. 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.

The partnership will help boost energy security and steer the country towards a cleaner, more sustainable future in line with the Marcos administration’s push for more natural gas in the country’s energy mix.

This will also make competitively priced and affordable power accessible to a broader base of Filipino consumers.

In a deal which values the entire enterprise at $ 3.3 biillion, MGen and AP will jointly invest in two of SMGP’s gas-fired power plants.

Together with SMGP, both parties will invest in almost 100 percent of the LNG import and regasification terminal owned by Linseed Field Corp. that will be used to receive, store and process LNG fuel for the two power plants.

“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. We are thrilled to have such reliable partners as we lay the foundation for a brighter, greener future,” Pangilinan said in a statement.

“Both LNG and renewables are needed to achieve a balanced energy mix and well planned energy transition. Above all, this is a big win for the Philippines and the people. Economic development is impossible without energy security, and this investment is a definitive step forward in that direction,” Aboitiz said.

Ang said three leading power companies are working together to secure the country’s energy needs while transitioning towards cleaner power sources.

“This represents a major leap forward for our energy future, ensuring not just reliability but also cost-efficient power for many Filipinos,” Ang added.