Meralco to put up 1,200-MW gas plant in Batangas

Meralco PowerGen Corp., the power generation arm of Manila Electric Co., plans to put up a liquefied natural gas-fired power plant in Batangas that can generate at least 1,200 megawatts, as part of its plans to help secure the growing electricity requirements within its franchise area.

The company wants to build the proposed LNG facility beside the Department of Energy’s $2.1-billion Batangas-Manila natural gas pipeline, and near the $1-billion regasification terminal in Tabangao, Batangas, to be constructed by Shell Companies in the Philippines—a strategic position that will enable Meralco to secure the supply of LNG from Shell and allow it to transport the gas to Manila through the pipeline.

Meralco PowerGen hopes that Shell would become its supplier of the LNG should it decide to push through with the project. This was formalized through a memorandum of understanding recently signed by both parties.

“The setting up of an LNG-based combined cycle power plant is meant to address fuel diversification as well as address the mid-merit capacity needs of the Luzon grid. This collaboration with Shell companies in the Philippines helps pave the way for facilities that ensure a reliable and competitively priced power supply,” said Aaron A. Domingo, Meralco PowerGen executive vice president and general manager.

For his part, Shell country chairman and president Edgar Chua said that the agreement with Meralco PowerGen would open “the door for greater use of cleaner energy and enhance energy security for the Philippines. We are very excited to work with Meralco PowerGen on this project.”

Shell may be able to supply the LNG to Meralco PowerGen through its planned LNG regasification terminal, which will be constructed beside its Tabangao refinery, and may be commissioned by 2016.