MGEN, TNGP, SMGP complete USD3.3B LNG terminal deal

The joint acquisition deal for a liquefied natural gas (LNG) terminal involving Manila Electric Company's subsidiary Meralco PowerGen Corporation (MGEN), San Miguel Global Power Holdings Corp. (SMGP), and Aboitiz Power Corporation through its subsidiary Therma NatGas Power Inc. (TNGP) has been completed.

The USD3.3-billion partnership involves Chromite Gas Holdings, Inc. (CGHI), a 60-40 percent joint venture between MGEN and TNGP, acquiring a 67-percent stake in South Premiere Power Corp. (SPPC), Excellent Energy Resources Inc. (EERI), and Ilijan Primeline Industrial Estate Corp. (IPIEC) from SMGP.

Chromite and SMGP are also purchasing 100 percent of Linseed Field Corp. (LFC) to operate an LNG terminal in Batangas City, marking the first and most expansive LNG facility in the country.

The Philippine Competition Commission (PCC) approved the acquisition deal last December, subjecting it to conditions aimed at ensuring fair competition and promoting transparency.

To address identified competition concerns, the involved firms submitted voluntary commitments including oversight of competitive selection processes, reporting power plants' unplanned outages, and appointing a competition compliance officer.