San Miguel energy subsidiary sets P87.1B capex for baseload power projects
- February 28, 2025
San Miguel Global Power Holdings Corp. (SMGP), the energy subsidiary of business tycoon Ramon Ang’s San Miguel Corporation, has earmarked a capital expenditure (capex) budget of around P87.1 billion to develop its baseload power projects in Mariveles, Masinloc, and Batangas.
Through its subsidiary Mariveles Power Generation Corporation (MPGC), SMGP has set aside a P34.4 billion capex budget for its 600-megawatt (MW) coal-fired thermal power plant in Mariveles, Bataan, the company said in a disclosure statement addressed to the Philippine Dealing & Exchange Corp. (PDEx). All four operational units at the Mariveles facility run on Circulating Fluidized Bed (CFB) technology, which burns fuels with lower emissions and more efficient combustion.
(Also read: The reality of coal in our energy transition)
SMGP is also expanding its coal-fired thermal power plant in Masinloc, Zambales with two additional 350-MW units, scheduled for completion between 2025 and 2026.
“As of September 2024, overall project completion of Unit 4 and Unit 5 are 81% and 69%, respectively, with equity-backed capital expenditures of P15.8 billion,” SMGP said.
Originally developed and owned by the state-run National Power Corporation, Unit 1 (315 MW) and Unit 2 (344 MW) of the Masinloc facility began operations in 1998. After acquiring the facility in 2018, SMGP expanded its capacity through its Unit 3 (335 MW) which began commercial operations in September 2020. SMGP also increased the dependable capacity of Unit 1 from 315 MW to 344 MW through retrofitting works in 2023.
SMGP is also developing a combined cycle power plant in Batangas to expand its power generation portfolio. With a P36.9-billion budget and a projected installed capacity of 1,320 MW, the power plant will use regasified liquefied natural gas (LNG) to generate electricity. The project is scheduled for completion within the first quarter of 2025.
(Also read: Three Tycoons Seal $3.3 Billion Deal for Philippines’ Largest LNG Facility)
Natural gas and coal plants are considered reliable sources of baseload power because they can operate continuously and provide an interrupted electricity supply.
Sources:
https://www.smcglobalpower.com.ph/our-business-power-generation?slug=mariveles-power-plant&p=4
https://www.smcglobalpower.com.ph/our-business-power-generation?slug=masinloc-power-plant&p=4
