Three of the country’s biggest power companies have concluded their $3.3 billion deal to operate an integrated liquefied natural gas (LNG) facility.
Meralco PowerGen Corp. (MGen) San Miguel Global Power Holdings Corp. and Aboitiz Power Corp. have completed the financial close for their partnership.
In separate disclosures to the Philippine Stock Exchange yesterday, Meralco said Chromite Gas Holdings Inc. — a partnership of MGen and Aboitiz unit Therma Natgas Power Inc. — is getting a 67-percent stake in San Miguel Corp. units Southern Premier Power Corp. (SPPC), Excellent Energy Resources (EERI) and Ilijan Priceline Industrial Estate Corporation (IPIEC).
Chromite and San Miguel will acquire 100 percent of Linseed Field Corp. (LFC) which operates the LNG terminal in Batangas.
MGEN and TNGP have a 60 percent and 40 percent stake in CHI, respectively.
Following the completion of these transactions, CHI will own 67 percent of SPPC, EERI and IPIEC.
SMGP will own the remaining 33 percent stake in SPPC, EERI, IPIEC, and LFC.
Emmanuel Rubio, MGen president and chief executive officer, said in a message to reporters the company is now focused on closing “punch list” items involved in the partnership and regasification facilities.
“The team will focus on closing punch list items for EERI and the regas facilities. The third unit of EERI is still undergoing commissioning and we expect that to be completed within February. We are also completing the first onshore tank and started constructing the second,” Rubio said.
After these activities, Rubio said, the parties can then look for possible efficiency improvements and work to further ensure reliability for both EERI and SPPC.
Betty Siy-Yap, Meralco chief finance officer and senior vice president, said in a separate message to reporters that with this financial close, the company has drawn the P75- billion credit facility provided by BDO Unibank Inc., Bank of the Philippine Islands and Metropolitan Bank and Trust Co.