Aboitiz Power Corp., an investor in the Philippines’ largest integrated liquefied natural gas (LNG) facility, alongside Meralco PowerGen Corp. and San Miguel Global Power Holdings Corp., said the project will support economic growth and energy security.
The company acquired a minority stake in the Batangas facility, which will eventually deliver more than 2,500 megawatts (MW) of power. The capacity comes from a new 1,320-MW combined cycle power plant and the existing 1,200-MW Ilijan Power Station, which historically contributed 10 percent to 12 percent of Luzon’s dependable power supply.
“We’re pleased to continue diversifying our generation portfolio and enhance our ability to deliver energy security in the Philippines through this minority stake in the country’s first integrated LNG facility,” said AboitizPower president and chief executivde Emmanuel Rubio. “Its importance in maintaining grid stability cannot be overstated.”
“LNG complements the growth of variable renewable energy sources like solar and wind by providing a reliable baseload,” Rubio said. “As a transition fuel, LNG plants can ramp power generation up or down quickly to address the intermittency of renewables, ensuring a stable power system.”
Gas-fired power plants are a natural complement to variable renewable energy sources, especially for maintaining grid stability and energy security. LNG-powered turbines can adjust their output rapidly to compensate for the fluctuations inherent in renewable energy generation.
The Philippine Energy Plan’s Clean Energy Scenario forecasts that by 2040, 50 percent of the country’s gross generation will come from renewables, with LNG contributing 26 percent.
“This investment aligns with AboitizPower’s growth strategy of adding 3,700 megawatts of new renewable energy capacity, ultimately achieving a balanced portfolio of 4,600 megawatts each for thermal and renewable assets,” Rubio said.
The natural gas-to-power facility will also contribute to the Philippines’ economic growth by providing stable and reliable electricity. A capacity exceeding 2,500 megawatts is crucial, as the Department of Energy projects peak demand to increase by 6.6 percent annually from 2020 to 2040.
Stable electricity fosters new investments and sustains existing businesses. Currently, the Philippines has the lowest electricity generation per capita in the Association of Southeast Asian Nations (ASEAN).
The national government aims for economic growth of 6.5 percent to 7.5 percent in 2024 and 6.5 percent to 8 percent from 2025 to 2028.