AboitizPower: Fueling The Future With LNG

In a groundbreaking venture set to redefine the energy landscape of the Philippines, AboitizPower, a leading force in the country's power generation sector, has embarked on a strategic investment journey.

AboitizPower's CEO Emannuel Rubio discusses the company's strategic investment in the Philippines' largest integrated LNG facility, highlighting its pivotal role in securing energy stability and driving economic growth. | Photos: AP/SMC Website

Teaming up with Meralco PowerGen Corporation and San Miguel Global Power Holdings Corporation, AboitizPower is taking the helm in the creation of the Philippines' largest integrated liquefied natural gas (LNG) facility.

The significance of this initiative cannot be overstated, as highlighted by AboitizPower's President and CEO, Emannuel Rubio.

"We are pleased to continue to diversify our generation portfolio and increase our capability in the delivery of energy security in the Philippines through a minority share in the first integrated LNG facility in the country. Its importance in keeping the lights on cannot be understated," remarked Rubio.

This landmark deal involves AboitizPower acquiring a minority stake in the integrated LNG facility located in Batangas.

The facility is poised to eventually deliver over 2,500 megawatts of power, leveraging a new 1,320-megawatt combined cycle power facility and the Ilijan Power Station, a stalwart in Luzon's power grid with a historical contribution of 10-12% of the region's net dependable power.

The integration of LNG technology into the energy matrix marks a strategic pivot in AboitizPower's growth trajectory.

As Rubio elucidated, "In an energy transition characterized mostly by the influx of variable renewable energy, the inclusion of LNG plants supports our pragmatic approach. As a transition fuel, LNG will complement the variabilities of solar and wind power generation, helping maintain the stability of the aggregate supply and the whole power system."

Gas-to-power generation emerges as a natural ally to variable renewable energy sources, offering a reliable solution to grid stability challenges. LNG-powered turbines possess the agility to swiftly adjust their output, effectively complementing the intermittent nature of renewables.

This investment aligns seamlessly with the Philippine Energy Plan's Clean Energy Scenario (CES), which forecasts a balanced energy mix by 2040, with 50% from renewables and 26% from LNG.

AboitizPower's commitment to this vision is further underscored by its growth strategy, aiming to achieve parity between thermal and renewable assets, totaling 4,600 megawatts each.

Beyond bolstering the country's energy security, the LNG facility holds the key to sustaining economic growth. With a projected annual increase in peak demand of 6.6% until 2040, stable and reliable electricity becomes a catalyst for investment and economic vibrancy.

AboitizPower's bold foray into LNG underscores its unwavering commitment to shaping a sustainable energy future for the Philippines while propelling economic prosperity. As the nation sets its sights on ambitious growth targets, AboitizPower stands poised to fuel the journey forward, illuminating the path to a brighter, more resilient future.

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