SAN MIGUEL Global Power Holdings Corp. (SMGP), the energy subsidiary of San Miguel Corp., has set a capital expenditure (capex) budget of about P87.1 billion to develop three baseload power projects.
SMGP, through its subsidiary Mariveles Power Generation Corp., has earmarked P34.4 billion in capex for its 600-MW coal-fired power plant in Mariveles, Bataan, the company said in a document posted on the Philippine Dealing & Exchange Corp.
The company is also expanding its Masinloc coal-fired thermal power plant in Zambales by constructing two additional units, each with a capacity of 350 MW. Both units are slated for completion between 2025 and 2026.
“As of September 2024, overall project completion of Unit 4 and Unit 5 are 81% and 69%, respectively, with equity-backed capital expenditures of P15.8 billion,” SMGP said.
Units 1 and 2, which have capacities of 315 MW and 344 MW, respectively, began operations in 1998. Both units were originally developed and owned by state-run National Power Corp.
After acquiring the facility in 2018, SMGP further expanded its capacity with Unit 3, a 335-MW unit that commenced commercial operations in 2020.
To further diversify its power portfolio, SMGP, through its subsidiary Excellent Energy Resources, Inc., is developing a 1,320-MW combined-cycle power plant in Batangas, targeted for completion in the first quarter of 2025.
SMGP has allocated P36.9 billion for the project, which will utilize regasified liquefied natural gas (LNG) to generate electricity. Units 1 and 2 of the LNG facility have been completed and are awaiting the issuance of a provisional authority to operate from the Energy Regulatory Commission.
In December last year, SMGP, along with Meralco PowerGen Corp. (MGen) of Manila Electric Co. (Meralco) and Therma NatGas Power, Inc. (TNGP) of Aboitiz Power Corp. (AboitizPower), received approval from the Philippine Competition Commission for their $3.3-billion LNG deal.
Under the agreement, MGen and TNGP will jointly invest in two of SMGP’s gas-fired power plants: the 1,278-MW Ilijan power plant and the new 1,320-MW combined-cycle power facility.
The three companies will also invest in the LNG import and regasification terminal owned by Linseed Field Corp. in Batangas.
SMGP, Meralco, and AboitizPower announced the completion of the transaction last month. — Sheldeen Joy Talavera