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Saturday, March 23, 2024 Vol. 19 No. 160
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MAJOR LEAP FORWARD IN ENERGY SECURITY PHL emerges as a new frontier market with recent signing of $3.3-B LNG deal
OWER industry stakeholders, experts and consumer advocacy groups weighed in on the pros and cons of a $3.3-billion liquefied natural gas (LNG) deal that seeks to achieve the country’s twin goals—energy security and lower power rates. Meralco PowerGen Corp. (MGen), Aboitiz Power Corp. (AP) and San Miguel Global Power Holdings Corp. (SMGP) forged a deal to establish an integrated LNG facility—the biggest of its kind in the Philippines. This will be possible via AP and MGen’s investment in SMGP’s 1,200-megawatt (MW) Ilijan power
plant and a new 1,320-MW facility that is targeted for commercial operations by yearend. Moreover, all three will acquire Linseed Field Corp.’s LNG import and regasification terminal to store and process LNG for SMGP’s two plants, thus, integrating their operations into the global LNG supply chain.
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By Lenie Lectura
“For the first time, three leading power companies are working together to secure our 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.”—Ramon S. Ang
MGen and AP formed a joint venture to make the investment in SMGP happen. They signed an investment agreement to form
Chromite Gas Holdings (CGHI) in which MGen will acquire 60 percent interest, while AP will acquire the balance of 40 percent. “For the first time, three leading power companies are working together to secure our 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 costefficient power for many Filipinos,” said SMGP Chairman Ramon Ang.
Lower power rates
ABOITIZ Power President Emmanuel Rubio said the synergy would make competitively priced and affordable power accessible to a broader base of Filipino consumers. There are no estimates yet on how much this deal can bring down electricity rates. Former Energy Undersecretary Atty. Jay Layug,
who now leads an umbrella organization of all renewable energy (RE) associations, said, “The collaboration, hopefully, will result in lower prices given that each party can tap into its respective commercial and logistical advantages.” Meralco’s rates for the month stood at P11.937 per kWh. Stable and reliable electricity will also encourage new investments and will help sustain existing ones. As it stands, the Philippines’s electricity generation per capita is the lowest in the Asean.
‘Bridge fuel’
LNG has been pitched as “bridge fuel” to help transition to RE. The Department of Energy (DOE) had said that the entry of LNG as a new type of fuel into the energy mix increases diversity and security of the country’s energy needs. It likewise provides the coun-
try with fuel and technology that allows flexibility in supporting the various grid demands from base load to providing reliable mid-merit to peaking power supply. This flexibility also enables the push to further develop intermittent RE technologies, such as solar and wind. As a transition fuel, Rubio said LNG would complement the variabilities of solar and wind power generation, helping maintain the stability of the aggregate supply and the whole power system. Gas-to-power generation is considered a natural complement to variable RE, especially if the aim is to maintain grid stability and strengthen energy security. Rubio explained that LNG-powered turbines are able to quickly ramp up or down the quantity of its generated electricity to complement the inherent intermittencies of RE. Continued on A2
Eternal Crematory opens state-of-the-art facility in Cagayan de Oro City
E
ternal Crematory, one of the first companies to offer cremation services in the Philippines, officially inaugurated its new facility in Cagayan de Oro City. The inauguration ceremony was marked by a simple blessing led by Rev. Fr. Fermin P. Tan of the Immaculate Concepcion Parish-Bulua. The event was attended by distinguished guests including Bulua, Cagayan de Oro City Chairman Al P. Legaspi Jr. and San Francisco, Agusan del Sur Sangguniang Bayan Member Atty. Jhong Del Prado Cadiz. Top executives of Eternal Crematory welcomed them, including ALC Group Chairman D. Edgard A. Cabangon, EVP & General Man-
ager Numeriano B. Rodrin, VP for Marketing Jose Antonio V. Rivera, VP for Finance Marvin C. Timbol, VP for Engineering and Development Engr. Nino Sayco, and Branch Manager Amor S. Leodones. Continued on A2
ETERNAL Crematory opens its 6th branch in Cagayan de Oro City with a simple blessing led by Rev. Fr. Fermin Tan (5th from right). In the photo, special guests including San Francisco, Agusan del Sur SB Member Atty. Jhong Cadiz (2nd from left) and Brgy. Bulua Chairman Al Legaspi Jr. (4th from right), are welcomed by Eternal Crematory top executives (from left to right): VP for Engineering and Project Development Nino S. Sayco, Eternal Crematory Cagayan de Oro Branch Manager Amor S. Leodones, Sharon Tan, ALC Group Chairman D. Edgard A. Cabangon, EVP and General Manager Numeriano B. Rodrin, VP for Finance Marvin C. Timbol, and VP for Marketing Jose Antonio V. Rivera.
PESO EXCHANGE RATES n US 55.9570 n JAPAN 0.3691 n UK 70.8472 n HK 7.1543 n CHINA 7.7724 n SINGAPORE 41.6533 n AUSTRALIA 36.7582 n EU 60.7917 n KOREA 0.0420 n SAUDI ARABIA 14.9210 Source: BSP (March 22, 2024)
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