San Miguel Corporation’s (SMC) power arm, SMC Global Power Holdings will invest in a 600-megawatt (MW) liquefied natural gas (LNG) power plant on Mactan Island in Cebu to provide grid baseload power.
The project, which will be built in Lapu-Lapu City, will cost between $1.5 and $1.7 million per MW, totaling $900 million to $1.2 billion (Php47.2-Php63 billion). The power plant will be erected on a 26.16-hectare plot of land that has been leased from Keppel Cebu Shipyard Land, Inc. and the National Development Company.
The facility will be built over five years, starting in the third quarter of this year, and testing and commissioning will take place in the fourth quarter of 2023. The first commercial operations will begin in the second quarter of 2024.
According to the Department of Energy’s (DOE) Power Development Plan, the country’s power demand would expand 5% per year by 2040, reaching 49,287MW.
SMC Global Power subsidiary Converge Power Generation Corporation (CPGC) said a 600 MW increased capacity would complement the DOE’s program of assuring the Philippines’ steady power supply,.
The project’s goal is to assist meet the growing need for dependable and inexpensive power.” It will contribute to national growth in addition to providing power to people and companies,CPGC said in a filing with the Department of Environment and Natural Resources.
SMC Global Power is also working on a 300MW LNG combined cycle power plant in San Carlos City, Negros Occidental, which is currently being criticized by local stakeholders and energy advocacy groups for its environmental and economic impacts. The multifaceted firm is also working on a Php41.5 billion 600MW LNG plant project in Tabango, Leyte.
Following the government’s embargo on the construction of new coal power stations, the business announced last year that it will focus more on LNG and renewable energy projects.