MGen remains keen on Atimonan LNG plant

By Alena Mae S. Flores – June 9, 2024, 8:35 pm
from manilastandard.net

Meralco PowerGen Corp. is still keen on developing Atimonan One Energy Inc. into a gas-fired power plant despite signing an agreement to acquire interest in Chromite Gas Holdings (CGHI) that will pave the way for its investment in a combined 2,500-megawatt liquefied natural gas (LNG) assets.

Manila Electric Co. and MGen chairman Manuel Pangilinan said the facility was initially intended as a coal plant, “but now we’re thinking the latest permutation is maybe gas for a number of reasons.”

MGen president Jaime Azurin said A1E is proceeding with the LNG permit applications, “unless the government withdraws the coal moratorium.”

AIE plans to put up a 2,400-MW natural gas-fired combined cycle gas turbine (CCGT) power plant and LNG terminal with floating storage unit in Atimonan, Quezon that is estimated to cost P175 billion.

A1E previously proposed a 1,200-MW ultra-supercritical coal-fired power plant of high efficiency-low emission in the project site which did not push through due to lack of a power supply agreement and opposition from environmentalist groups.

The company decided to convert the coal plant into a cleaner option—a CCGT power plant using natural gas as fuel, delivered via an LNG carrier and LNG terminal.

MGen and Therma NatGas Power Inc. (TNGP) of the Aboitiz Group announced in March their plan to acquire interest in CGHI that will lay the foundation for their investment in LNG assets valued at $3.3 billion.

MGen will acquire a 60-percent interest, while TNGP take the balance of 40 percent in CGHI.

CGHI intends to invest in two gas-fired power plants owned by San Miguel Global Power Holdings Corp. (SMGP)—the 1,278-MW Ilijan power plant and a new 1,320-MW combined cycle power facility that is currently under construction.

CGHI intends to acquire a 67-percent equity interest in the LNG assets, while SMGP will own the remaining 33 percent.