Energy Partnership Among Tycoons Gets Nod From PH Competition Commission

The Philippine Competition Commission (PCC) has approved a groundbreaking partnership among three of the country’s top conglomerates—Aboitiz Power, San Miguel Corporation (SMC), and Manila Electric Co. (Meralco).

By combining their expertise and resources, MGen, AboitizPower, and SMGP are ensuring the delivery of dependable, cost-effective energy while fostering economic growth and championing environmental preservation. I Photo: San Miguel Corporation

This collaboration marks a new chapter in the Philippines’ energy security, promising to strengthen the nation’s energy infrastructure while ensuring affordable and accessible power for more Filipinos.

Valued at $3.3 billion, the alliance brings together Meralco’s subsidiary Meralco PowerGen Corp., Aboitiz Power’s subsidiary Therma NatGas Power Inc., and San Miguel Global Power Holdings Corp. (SMGP)—the energy arm of the diversified conglomerate San Miguel Corporation.

The partnership will establish the country’s first and largest integrated liquefied natural gas (LNG) facility in Batangas, representing a significant leap forward for the Philippine energy sector.

The three industry leaders—Manuel Pangilinan, Ramon Ang, and Sabin Aboitiz—are spearheading this landmark development, which will transform the energy landscape of the Philippines.

Once fully operational, the facility will boast an impressive 2,500 megawatts (MW) of generation capacity, significantly bolstering the country’s power supply.

As part of the agreement, UBS AG is serving as the financial adviser, assisting MGen and AboitizPower in their substantial investments in SMGP’s two gas-fired power plants: the 1,278-MW Ilijan power plant and a new 1,320-MW combined-cycle power facility, expected to begin operations by the end of the year.

Additionally, the companies will jointly invest in nearly 100 percent of the LNG import and regasification terminal owned by Linseed Field Corp., a subsidiary of Atlantic, Gulf, and Pacific Co. (AG&P).

This acquisition and investment in the LNG import terminal is a game-changer, providing critical infrastructure to receive, store, and process LNG fuel for the power plants. It marks a bold step in fully integrating the Philippines into the global natural gas supply chain.

Describing the venture as "pathbreaking," Pangilinan emphasized that this partnership is not only a milestone for Philippine energy security but also a pivotal step toward a greener and more sustainable future.

The government’s push for a cleaner energy mix aligns seamlessly with this initiative, positioning natural gas as a key component in reducing emissions and promoting cleaner alternatives.

The alliance also aims to lower energy costs and make competitively priced power accessible to more Filipinos.

“Apart from transforming the energy landscape of the Philippines, this symbolizes a milestone alliance among major players in the energy industry toward a more sustainable future. We are thrilled to have such reliable partners as we lay the foundation for a brighter, greener future,” Pangilinan said.

Ramon Ang echoed this sentiment, stating that the collaboration represents the first time three leading power companies have united to secure the nation’s energy needs while transitioning to 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,” he added.

Beyond addressing the country’s energy needs, the partnership supports environmental goals by significantly reducing emissions. This alignment of economic, environmental, and energy security goals complements the government’s strategy to diversify energy sources through cleaner natural gas.

The introduction of LNG into the energy mix is expected to enhance the security and diversity of the country’s energy supply, offering the flexibility to support various grid demands, from baseload to peaking power.

The Department of Energy aims to increase the share of natural gas in the country’s power generation mix to 26 percent by 2040.

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

By combining their expertise and resources, MGen, AboitizPower, and SMGP are ensuring the delivery of dependable, cost-effective energy while fostering economic growth and championing environmental preservation.

This alliance signifies not just a transformation in the energy sector but also the creation of a brighter, more sustainable future for all Filipinos.