The liquefied natural gas (LNG) venture of tycoon Lucio Tan seeks to cater to the electricity needs of the Manila Electric Company (MERALCO), the country’s largest power distributor.
Batangas Clean Energy, Inc., a joint venture between Tan and American firm Gen X Energy, plans to sell capacity to MERALCO customers. This could be firmed up if the Tan-led firm chooses to join MERALCO’s competitive power supply auction.
The Department of Energy (DOE) recently gave the green light for the Php37.6 billion LNG venture along with three other projects. It also has been issued certifications as an “energy project of national significance” (EPNS), which will entitle the Tan-led joint venture to streamlined process of permitting.
The said amount will cover for an onshore LNG import terminal and integrated investments among others.
Projects that qualify as EPNS ventures are given a 30-day approval process on their permits under Executive Order No. 30 issued by President Rodrigo Duterte in 2017.
The onshore LNG import terminal will be located close to the Tan group’s distilleries in Batangas City.
The facility, expected to be completed by 2025, would provide 1,100 megawatts of power to cater initially to the needs of the Tan distilleries’ and the JG Summit Petrochemicals’ facilities.
Photo courtesy of The Philippine Star website.