Aboitiz Power Eyes LNG, Renewables for Balanced Energy Transition

Aboitiz Power Corporation has identified liquefied natural gas (LNG) as a vital component in its strategy to support the Philippines’ ever-demanding energy landscape while maintaining a balanced and diversified energy mix.​

In a recent statement during the annual stockholder’s meeting, Chief Commercial and Stakeholder Engagement Officer Danel Aboitiz stated, “ We view liquefied natural gas, or LNG, as a natural next step for Aboitiz Power. LNG provides reliable, dispatchable capacity, and with its flexibility can serve as an enabler for integrating more variable renewable energy into the country’s energy mix.”

While acknowledging that coal-fired power plants will continue to play a large role in the country’s energy mix—citing the Department of Energy’s statement on existing committed coal capacities despite the moratorium on new coal projects—Aboitiz Power emphasized that LNG, renewables, and energy storage systems are expected to take up an increasing share of the energy supply in the coming years.​

“While we expect coal plants to continue to play a key role in the country’s energy landscape, particularly since the Department of Energy stated that there are still considerable committed capacities from before the coal moratorium, we also expect that LNG and renewable energy, along with energy storage systems, will have an increased share of the energy pie in the coming years.” Aboitiz added.

This strategic initiative aligns with Aboitiz Power’s recent collaboration with Meralco PowerGen Corporation (MGen) and San Miguel Global Power Holdings Corp. (SMGP) in a $3.3 billion USD investment to develop the country’s first integrated LNG facility in Batangas. ​

The joint venture, Chromite Gas Holdings Inc., involves the acquisition of a 67% stake in two gas-fired power plants and the LNG import and regasification terminal operated by Linseed Field Corp.​

Aboitiz Power’s balanced portfolio approach, incorporating both traditional and renewable energy sources alongside emerging technologies like battery energy storage systems, reflects its promise to a well-managed energy transition.​

The company aims to give reliable energy security and sustainability in response to the country’s ever-increasing baseload demand.

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