MANILA, Philippines - Manila Electric Co. (Meralco) has completed the purchase of a 70-percent stake in a Singapore power plant project, the power utility said in a disclosure to the Philippine Stock Exchange (PSE) yesterday.
Meralco, the country’s largest power distributor, said it has already completed the acquisition of a 70-percent stake in an 800-megawatt liquefied natural gas project in Singapore for $488 million.
Meralco subsidiary PowerGen Corp. and Hong Kong-based conglomerate First Pacific Co. Ltd. have formed a joint venture, FPM Power Holdings Ltd. (FPMP), to acquire 70 percent of GMR Energy (Singapore). The remaining 30 percent is owned by Malaysia’s Petronas.
GMR Energy is currently constructing two 400-megawatt LNG combined cycle combustion turbine power plant in Jurong Island, Singapore. The plant is expected to begin commercial operations by December this year.
The investment complements Meralco’s efforts to become a major energy player in the region.
GMR Energy’s facility is expected to start commercial operations in November and December 2013. The power plant’s output will be sold to SP Power Assets Ltd., the retail market, and to merchant supply operations.
With the joint venture deal, Meralco said the Philippines is expected to benefit from LNG combined cycle power plant technology.
Meralco, which posted a core income of P16.265 billion last year, is also looking at expanding in other countries such as Myanmar, Thailand and Vietnam.
Meralco is also open to partnering with Petronas, Malaysia’s oil and gas giant, for oil and gas ventures in the Philippines.
Meralco chairman Manuel V. Pangilinan earlier said that the company is open to partnering with Petronas in various projects including LNG ventures but mainly in the Philippines.
Petronas or the Petroliam Nasional Berhad, is a Malaysian oil and gas company founded in August 1974 which owns part of the Singapore power plant acquired by Meralco.