SMGP earmarks P87 billion for baseload expansion

MANILA, Philippines — San Miguel Global Power Holdings Corp. (SMGP) of tycoon Ramon Ang has set aside at least P87.1 billion to further beef up its baseload portfolio.

SMGP, through Mariveles Power Generation Corp., recently completed its 600-megawatt (MW) coal-fired power plant in the municipality of Mariveles in Bataan, with all four units now operating.

With an estimated investment of P34.4 billion, the Mariveles facility runs on a circulating fluidized bed, a steam-generating technology that burns fuels with higher efficiency and lower emissions.

Similarly, the power arm of San Miguel Corp. is further expanding its Masinloc coal-fired thermal power plant in Zambales through the development of two more units with a capacity of 350 MW each.

Both units are scheduled for completion between this year and the next, SMGP said.

“As of September 2024, overall project completion of Unit 4 and Unit 5 are 81 percent and 69 percent, respectively, with equity-backed capital expenditures of P15.8 billion,” the company said.

Originally developed by National Power Corp., the first two units of the Masinloc power plant – 315 MW and 344 MW – started operating in 1998.

After acquiring the facility in 2018, SMGP constructed the third unit (335 MW), which began commercial operations in September 2020.

To further diversify its power portfolio, SMGP is also developing a 1,320-MW combined cycle power plant in Batangas, with completion expected within the first quarter of this year.

Backed by a P36.9-billion budget, the power plant will utilize regasified liquefied natural gas (LNG) to produce electricity, the company said.

Natural gas and coal plants are regarded as reliable sources of baseload power due to their capacity to operate continuously, providing an uninterrupted electricity supply.

Last month, SMGP completed its $3.3-billion LNG deal with tycoon Manuel V. Pangilinan’s Meralco PowerGen Corp. (MGen) and Aboitiz-owned Therma Natgas Power Inc. (TNPI).

MGen and TNPI, through their joint venture Chromite Gas Holdings Inc., invested in two gas-fired facilities under SMGP.

The deal also involves the acquisition of Linseed Field Corp., the owner and operator of an import and regasification LNG terminal in Batangas.

Last December, SMGP raised $500 million from the issuance of senior perpetual capital securities, proceeds of which were used to fund its various projects.

Just last week, the company returned to the offshore debt market and secured an additional $100 million to partially finance the redemption of its outstanding perpetual securities issued in 2020.