SMC Plans to Build LNG Plant
San Miguel Corporation (SMC) has plans to build 2,550 megawatts of power facilities using imported liquefied natural gas to hit commercial operations in 2022. According to SMC President and Chief Operating Officer Ramon S. Ang, the project will be done in three stages at 850MW capacity each.
The site is in Batangas, proximate to the existing 1,200MW Ilijan gas-fired power facility, and SMC Global Power Holdings Corporation is the subsidiary that advances this project to implementation. The plan is to offer its capacity in an exercise that power utility giant Manila Electric Company (Meralco) undertakes on its competitive selection process (CSP) for new power supply agreements.
“The power generation group of San Miguel, we are now switching to LNG. We intend to build three lines of 850MW, so that’s 2,550MW,” Ang said.
He added that the development blueprint is set for the targeted commercial operation date of the initial 850MW by 2022 - the timeframe when imported LNG begins to flow into the country. Ang said that SMC will have its own floating storage regasification unit (FSRU) to supply LNG to its own gas plants – and exploratory discussions with Batangas-headquartered engineering and gas firm AG&P are now being conducted.
“All of that can be up and running in two years,” Ang said. “In 24 months, that plant will be up and running. Whether we win the Meralco bid or not, we will construct the first line of 850MW.”
Ang said that the alternative off-takers could be the electric cooperatives, specifically those operating in the grids of Luzon and Visayas. According to him, the longer-term goal will double their capacity to 5,000MW, which can depend on the electricity demand gains.
Ang also indicated that SMC is eyeing to replace their old coal plants with LNG-fed generating facilities, so that forced outages could be minimized.