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Meralco, Aboitiz, San Miguel Close $3.3B LNG Acquisition"
The joint acquisition of a liquefied natural gas (LNG) terminal by the country’s leading power companies, owned by Manuel V. Pangilinan, Sabin Aboitiz, and Ramon S. Ang, has reached financial closure.
In a disclosure to the stock exchange on Tuesday, Manila Electric Company (Meralco) announced that its wholly owned subsidiary, Meralco PowerGen Corporation (MGen), along with San Miguel Global Power Holdings Corp. (SMGP) and Aboitiz Power Corporation through its subsidiary, Therma NatGas Power Inc. (TNGP), has completed the financial close of the $3.3-billion partnership.
The agreement involves Chromite Gas Holdings, Inc. (CGHI) acquiring a 67% stake from SMGP in South Premiere Power Corp. (SPPC), Excellent Energy Resources Inc. (EERI), and Ilijan Primeline Industrial Estate Corp. (IPIEC).
Chromite Gas Holdings is a joint venture, with MGen holding 60% and Therma NatGas Power Inc. owning 40%.
In addition, Chromite and SMGP will acquire full ownership of Linseed Field Corp. (LFC) to manage an LNG terminal in Batangas City.
With these acquisitions, MGen and TNGP, through their 60-40 partnership in CGHI, will control 67% of SPPC, EERI, and IPIEC, while SMGP will maintain a 33% stake in these companies and secure a corresponding interest in LFC.
The Philippine Competition Commission (PCC) approved the transaction in December last year.
“The transaction, which plays a crucial role in enhancing the country’s energy supply, is subject to conditions that promote fair competition and transparency,” the PCC stated earlier.
However, during its review, the PCC identified potential competition issues, including risks of market coordination in national power generation and possible foreclosure in power supply agreements with distribution utility companies.
To address these concerns, the involved companies submitted voluntary commitments, which the PCC reviewed and validated with input from industry stakeholders, the Department of Energy (DOE), and the Energy Regulatory Commission.
The safeguards include PCC oversight of the competitive selection process to prevent collusion, submission of power plants’ unplanned outage reports to the PCC within seven days of reporting to the DOE, and the appointment of a competition compliance officer to ensure adherence to these commitments. (PNA)
Source:
MVP, Aboitiz, RSA complete gas deal. (2025). Philippine News Agency. https://www.pna.gov.ph/articles/1242799
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