Meralco unit mulls $2-B nat gas facility

MANILA, Philippines - Meralco PowerGen Corp., the power generation arm of the country’s largest power distributor, is in discussions for a $2-billion natural gas facility in the Philippines to be built together with a Japanese partner.

On the sidelines of Metro Pacific Investments Corp.’s annual press briefing yesterday, MPIC and Meralco chairman Manuel V. Pangilinan said his group is currently in talks with Osaka Gas for the possible construction of a natural gas power plant which will have a generating capacity of between 1,200 to 1,500 megawatts (MW).

“They (Osaka Gas) came over. They want to build a gas plant in the Philippines. It might be done in phases but it’s up to 1,500 MW,” Pangilinan said.

The business tycoon said an investment of up to $2 billion would be needed should the power plant project be pursued.

“It’s under discussion. First they have to familiarize themselves with the power industry here, they’re relatively new. But they’re keen to invest in the Philippines,” he said.

Pangilinan said the power facility would include construction of a gas-fired power plant and a regasification facility for imported liquefied natural gas.

“We have to build a regasification facility. There’s no more gas for that size of plant from Malampaya so we have to build a regas facility. Import gas in LNG form, regasify it and use that as fuel,” he said.

Pangilinan said he is hoping that the plant could be constructed in the next three to five years to cater to the growing power requirements of Luzon.

Osaka Gas is a leading energy supplier in Japan with operations for more than a century.