SMC unit needs P214B to finish capital projects
BY LENIE LECTURA – MAY 3, 2022
from Business Mirror
SMC GLOBAL Power Holdings Corp. (SMCGP) would need P214.8 billion to finish its capital expenditure (capex) projects, including capital-intensive liquefied natural gas (LNG) power plants.
In a filing, the power arm of conglomerate San Miguel Corp. said the amount authorized, but not yet disbursed for capital projects, is “approximately P24,795 million as of December 31, 2021.”
“The funds to be used for these projects will come from available cash and proceeds from outstanding long-term loan,” it said.
These projects involve the construction of power plants, mostly utilizing high efficiency low emission technologies, LNG and battery energy storage systems (BESS). SMCGP said these projects are “needed for normal operations of the business” and will be “carried forward to the next quarters” until completion.
“The group’s material commitments for capex projects have been approved in prior years and in the current year but these projects are ongoing and not yet completed as of December 31, 2021,” it added.
Just recently, SMCGP informed the Department of Environment and Natural Resources (DENR) that it will put up an LNG power plant in Cebu.
SMCGP is planning to construct a 600-MW LNG Combined Cycle Power Plant Project in Lapu-Lapu, Cebu. This will be located within the 26.16-hectare property leased from Keppel Cebu Shipyard Land Inc. and National Development Co.
The company had also disclosed that it plans to construct a 1,300-MW LNG combined cycle plant in Batangas City; a 600MW LNG combined cycle power plant in Leyte; 4×75-MW LNG Combined Cycle Power Plant in Negros Occidental.
For BESS, a total of 1,000MW BESS facilities nationwide will be operational this year.
SMCGP earlier earmarked $1 billion to build 31 BESS with a capacity of 1,000MW.
These are all part of the power firm’s plans to boost its renewables portfolio reduce its carbon footprint while helping address the country’s need for reliable and affordable power, it said.
