$3.3B LNG deal: Ensuring Philippine energy security and lowering power rates

The Philippine power industry is set to undergo a significant transformation with the recent announcement of a groundbreaking liquefied natural gas deal. Meralco PowerGen Corp. , Aboitiz Power Corp. , and San Miguel Global Power Holdings Corp. have joined forces to establish the largest integrated LNG facility in the country. This collaboration marks a crucial step towards achieving the nation’s twin goals of energy security and lower power rates.

While there are no immediate estimates on the exact reduction in electricity rates, the collaboration’s ability to tap into commercial and logistical advantages offers hope for more affordable prices. This is a significant development, considering Meralco’s current rates stand at P11.937 per kWh. Lower power rates not only alleviate the burden on consumers but also stimulate economic growth by attracting new investments and sustaining existing ones.

While the LNG deal offers short-to-medium-term solutions to bridge the supply gap resulting from the moratorium on new coal plants and the retirement of existing ones, it is crucial to acknowledge the need for a definitive end to fossil fuels. Atty. Pedro Maniego Jr., Senior Policy Advisor at the Institute for Climate and Sustainable Cities, rightly emphasizes that a bridge must have an end.

In addition to the economic benefits and the transition towards cleaner energy, the LNG deal promises stable and reliable power supply, a critical factor for sustaining economic growth. The Department of Energy highlights that LNG’s entry into the energy mix enhances diversity and security in meeting the country’s energy needs. MGen, AP, and SMGP emphasize the importance of stable electricity supply in encouraging new investments and supporting existing ones.

Source: News Formal (newsformal.com)

Philippines Latest News, Philippines Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Consumer group: $3.3 billion LNG enterprise to bring higher power ratesConsumer group United Filipino Consumers and Commuters (UFCC) over the weekend said government inaction on the $3.3-billion liquefied natural gas (LNG) facility in Batangas would lead to higher electricity rates.
Source: gmanews - 🏆 11. / 68 Read more »

Consumer groups warns power prices could go up with LNG dealDefining the News
Source: MlaStandard - 🏆 20. / 55 Read more »

Bill banning power distribution utilities from owning power plants filedA bill prohibiting power distribution firms from owning power generation companies and retail electricity suppliers has been filed by opposition lawmakers in the House of Representatives.
Source: gmanews - 🏆 11. / 68 Read more »

Prime Infrastructure and First Gen in discussions for gas aggregation frameworkRazon-led Prime Infrastructure Capital Inc. and Lopez-owned First Gen Corp. are discussing the development of a gas aggregation framework using First Gen's LNG terminal in Batangas. The framework aims to blend declining volumes of indigenous gas with imported LNG, ensuring a least-cost solution for consumers and enhancing energy security. The proposal has the support of the Department of Energy and could help mitigate the impact of rising LNG prices due to the Ukraine-Russia war.
Source: PhilstarNews - 🏆 1. / 94 Read more »

Philippines' richest tycoons team up for $3.3B LNG facilityManny Pangilinan, Sabin Aboitiz, and Ramon Ang are teaming up for the Philippines' first integrated LNG facility in Batangas. They will invest in power plants and an LNG import terminal.
Source: rapplerdotcom - 🏆 4. / 86 Read more »

Energy consumer advocacy group expresses concern over $3.3B LNG dealP4P expressed concern over the $3.3-billion liquefied LNG deal among three of the Philippines’ most influential companies
Source: gmanews - 🏆 11. / 68 Read more »