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AboitizPower partners with top energy companies in PH’s first integrated LNG plant in Batangas

AboitizPower first integrated LNG plant

Aboitiz Power Corporation (AP) has entered into a landmark partnership with San Miguel Global Power Holdings Corp. (SMGP) and Meralco PowerGen Corporation (MGen), to launch the country’s first and most expansive integrated liquefied natural gas (LNG) facility in Batangas. The milestone development between three of the country’s top energy companies is expected to add over 2,500 MW of power generation that is cleaner than production using fossil fuels.

AP and MGen will jointly invest in two of SMGP’s gas-fired power plants – the 1,278 MW Ilijan power plant and a new 1,320 MW combined cycle power facility which is expected to commence operations by the end of 2024. Meanwhile, SMGP, together with AP and MGen, will invest in almost 100% of the LNG import and regasification terminal owned by Linseed Field Corporation. This partnership increases the probability of success as it enables bold, fast action, which energy security requires. The entire project is valued at US$3.3 billion.

As one of the leading power producers in the country, AP brings with it decades of operational expertise, including renewable energy operations. By leveraging its combined experience and resources, AP is confident that the LNG facility will deliver competitively-priced and affordable energy while helping boost economic growth and environmental preservation. Projects such as this that espouse openness, embrace innovation, and explore synergies beyond company borders for national development best exemplify the Aboitiz Group’s Great Transformation into the Philippine’s first techglomerate.

“This is a milestone investment. Both LNG and renewables are needed to achieve a balanced energy mix and well-planned energy transition. Above all, this is a big win for the Philippines and the people. Economic development is impossible without energy security, and this investment is a definitive step forward in that direction,” said AP Chairman of the Board and Aboitiz Group President and CEO Sabin M. Aboitiz.

LNG is considered a transition fuel that complements existing renewable power sources like solar and wind power. With its lower emissions and high reliability, AP and its partners hope to increase the country’s energy supply responsibly, while aligning with the government’s goals of reducing greenhouse gas emissions by 70% by 2030 and increasing natural gas’ share in the country’s power generation mix to 26% by 2040.

This collaboration is aligned with the Marcos administration’s strategy for the country’s energy sector, diversifying energy sources and utilizing cleaner fuels such as natural gas. LNG is significantly more environment-friendly than traditional fuels and has less emissions when used in power generation.

Additionally, the Department of Energy’s (DoE) Philippine Energy Plan has identified LNG as crucial for the country’s energy sustainability and security, ensuring that LNG-fuelled energy production will remain a valuable and pivotal sector for growth. Beyond business, this joint development by the country’s top energy companies is a direct response and commitment to address the rapidly rising energy needs of the country.

About Aboitiz Equity Ventures

AEV is one of the leading conglomerates in the Philippines with over 100 years of business history. It has major investments in power, banking and financial services, food, infrastructure, land, and data science and artificial intelligence. AEV is recognized as one of the best-managed companies in the Philippines and the region, consistently cited for its commitment to good corporate governance and sustainability. Currently, the company is on its Great Transformation journey to become the Philippines’ first Techglomerate as it continues to shape the future by advancing business and communities.

AEV is a member of the United Nations Global Compact, Global Compact Network Philippines Board of Trustees, the APEC Business Advisory Council and the Council for Inclusive Capitalism, and helps champion sustainability initiatives on a regional level through policies, advocacies, and initiatives that contribute to the United Nations Sustainable Development Goals (UN SDGs). With a clear focus on ESG, the company is implementing its #OneAboitizSustainability Synergy model which transforms its life-essential businesses to improve sustainable practices and continue to create a positive impact on society and the environment.

Link to AEV’s website and release: https://aboitiz.com/investor-relations/disclosure/

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