Meralco PowerGen Corporation (MGen), Therma NatGas Power Inc. (TNGP), and San Miguel Global Power Holdings Corp. (SMGP) have officially finalized their US$3.3 billion deal, marking a major step forward in the development of an integrated liquefied natural gas (LNG) facility in Batangas. The completion of the financial arrangements paves the way for this significant project, which will enhance the Philippines’ energy infrastructure.
This groundbreaking deal brings together the subsidiaries of Manila Electric Company (Meralco), Aboitiz Power Corporation (AboitizPower), and San Miguel Corporation (SMC)—with the shared objective of expanding and modernizing the country’s LNG capabilities.
Key features of the transaction are:
- Chromite Gas Holdings, Inc. (CGHI), a holding company of MGen and TNGP (holding 60% and 40%, respectively), will take an active role in the investment and development of South Premiere Power Corp. (SPPC), Excellent Energy Resources, Inc. (EERI), and Ilijan Primeline Industrial Estate Corp. (IPIEC).
- SPPC operates the 1,278-megawatt (MW) Ilijan Combined Cycle Gas Power Plant, while EERI is behind the ongoing construction of a 1,320-MW combined cycle gas power plant. IPIEC owns the land for both plants.
- MGen, TNGP, and SMGP will also acquire Linseed Field Corporation (LFC), an LNG import and regasification terminal in Batangas. This terminal will play a crucial role in supplying LNG to SPPC and EERI’s power plants.
Under the new agreement, CGHI will now hold a 67% stake in SPPC, EERI, and IPIEC, with SMGP maintaining a 33% share in these entities, as well as in LFC.
The completion of this deal follows approval from the Philippine Competition Commission (PCC), which cleared the way for the joint acquisition of the power plants and the LNG terminal, subject to certain voluntary commitments from the acquiring parties.
SyCipLaw represented AboitizPower led by partners Arlene M. Maneja and Leah C. Abutan, supported by senior associate Fenina Maria C. De Leon and associates Paolo Gabriel P. Bautista and Tanya Beatriz Y. Tan. Additionally, partners Franco Aristotle G. Larcina and Roshni V. Balani represented SMGP for the PCC portion of the transaction, supported by associates Monica Therese B. Lee, Armand Karlo G. Lustre, and Jose Maria C. Ramos.
