Aboitiz, Ang, Pangilinan power firms finish deal for integrated LNG facility | ABS-CBN

ADVERTISEMENT

dpo-dps-seal
Welcome, Kapamilya! We use cookies to improve your browsing experience. Continuing to use this site means you agree to our use of cookies. Tell me more!

Aboitiz, Ang, Pangilinan power firms finish deal for integrated LNG facility

Aboitiz, Ang, Pangilinan power firms finish deal for integrated LNG facility

Benise Balaoing,

ABS-CBN News

Clipboard

MANILA — Three of the biggest players in the Philippine power industry have finshed their deal to operate an integrated liquefied natural gas facility.

Meralco PowerGen Corporation (MGen), Aboitiz Power Corporation, and San Miguel Global Power Holdings Corp. (SMGP) have completed their agreement for the LNG facility which they described as the first and most expansive LNG facility in the country.

In disclosures to the Philippine Stock Exchange (PSE), Meralco said Chromite Gas Holdings Inc. (Chromite)--a venture of MGEN and Aboitiz's Therma Natgas Power Inc. (Therma)--is investing in a 67 percent stake in San Miguel units South Premiere Power Corp. (SPPC), Excellent Energy Resources Inc. (EERI), and Ilijan Primeline Industrial Estate Corp.

Chromite and San Miguel Power will also jointly buy 100 percent of Linseed Field Corp. (LFC), which operates the liquefied natural gas (LNG) terminal in Batangas City.

ADVERTISEMENT

This means MGEN and Therma, through their 60/40 ownership of Chromite, will control 67 percent of SPPC, EERI, and Ilijan Primeline. 

The deal, worth $3.3 billion, is expected to increase the country's power supply with over 2,500 MW of generation capacity once fully operational.

The Philippine Competition Commission approved the deal in December.

Business tycoon Manny Pangilinan owns MGen, while Sabin Aboitiz owns Therma. San Miguel Power, meanwhile, is owned by Ramon Ang. Pangilinan said the deal is a "pathbreaking venture," which will transform the Philippine energy landscape.

Aboitiz, meanwhile, said that this investment is a definitive step towards energy security, which will boost the Philippines' economic growth.

For his part, Ang said the move will ensure reliable and cost-efficient power for many Filipinos.

RELATED VIDEO: 



ADVERTISEMENT

Marcos Jr. cuts taxes for energy players engaged in build-operate-transfer deals with gov't

Marcos Jr. cuts taxes for energy players engaged in build-operate-transfer deals with gov't

Katrina Domingo,

ABS-CBN News

Clipboard

MANILA — President Ferdinand Marcos Jr. has ordered the reduction of real property taxes of independent power producers (IPP) who entered a build-operate-transfer (BOT) agreement with the government.

In his Executive Order No. 83, Marcos Jr. said that “all liabilities for real property taxes for CY 2024, including any special levies… on property, machinery and equipment directly used by OPPs for the production of electricity under the BOT scheme” shall be “reduced to an amount equivalent to the tax due if computed based on an assessment level of 15 percent of the fair market value” of these properties.

“All interests and/or penalties on such deficiency… are also hereby condoned, and the concerned IPPs are relieved from payement,” the order read.

The order comes after the Department of Finance (DOF) raised concerns from various local government units that IPPs in their territories “are not entitled to exemptions and privileges enjoyed by other government-owned and controlled corporation.”

ADVERTISEMENT

The said discounted tax rate will be “applied to real property tax liabilities for succeeding years,” it said.

The DOF was also mandated to submit to the President a progress report on the implementation of the order after six months.

ADVERTISEMENT

ADVERTISEMENT

It looks like you’re using an ad blocker

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker on our website.

Our website is made possible by displaying online advertisements to our visitors. Please consider supporting us by disabling your ad blocker on our website.