San Miguel Power Unit Allocates P87.1B for Major Baseload Development
- March 14, 2025
San Miguel Global Power (SMGP) is investing P87.1 billion in three baseload power projects, strengthening its energy portfolio.
SMGP’s subsidiary, Mariveles Power Generation Corp., has allocated P34.4 billion for a 600-megawatt (MW) coal plant in Mariveles, Bataan. Now fully operational, the facility features four units using High-Efficiency, Low-Emission (HELE) technology to reduce environmental impact.
The Mariveles facility utilizes circulating fluidized bed technology, a high-efficiency steam generation system that reduces emissions. Units 1 to 3 began commercial operations last year, while Unit 4 followed on January 9. The four units have a combined net load of 528 MW with 37% thermal efficiency.
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Ongoing expansion
SMGP is also expanding the Masinloc coal plant in Zambales with two 350-MW units set for completion by 2025 to 2026. Plans include adding Units 4 and 5, which will feature supercritical pulverized coal technology, a 630-MW netload, and 42% thermal efficiency.
The company stated, “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.”
The Masinloc power plant’s first two units, with capacities of 315 MW and 344 MW, began operations in 1998 under the state-owned National Power Corp.
When SMGP acquired the facility in 2018, it added Unit 3, a 335-MW unit that began commercial operations in September 2020.
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Broadening its energy portfolio
Natural gas and coal plants provide stable baseload power by ensuring a continuous electricity supply. To expand its energy mix, SMGP’s subsidiary, Excellent Energy Resources Inc., is building a 1,320-MW combined-cycle power plant in Batangas, set for completion in early 2025 with a net load of 1,275 MW.
SMGP has invested P36.9 billion in the project, which will generate power using regasified LNG. With a 60% thermal efficiency rate, Units 1 and 2 are complete and awaiting regulatory approval. According to the company, the project is 98.2% finished.
To accelerate energy access in rural areas, the company plans to develop small-scale LNG units in key Mindanao locations, each ranging from 50 MW to 100 MW. It shared, “The company is evaluating the timing on progressing the project depending on market conditions, the general state of the Philippine economy and demand, among others.”
In line with the country’s shift to cleaner energy, SMGP’s subsidiary SMC Global Light and Power Corp. (SLPGC) is developing solar projects with partners. The first phase aims for a 1,300-megawatt peak (MWp) across Luzon by 2028, while the second targets 1,100 MWp in Pagbilao, Bohol, and Mindanao by 2039.
Additionally, SGLPC partnered with Citicore Renewable Energy Corp. through an investment and shareholders agreement to develop a 150-MW solar plant in Mariveles, Bataan, set for completion in 2026.
Last January, SMGP finalized a $3.3-billion LNG agreement with Meralco PowerGen Corp. (MGen) and Aboitiz-led Therma Natgas Power Inc. (TNPI). Through their joint venture, Chromite Gas Holdings Inc., MGen, and TNPI invested in two of SMGP’s gas-fired power plants. The deal also included the acquisition of Linseed Field Corp., which operates an LNG import and regasification terminal in Batangas.
With these projects, the company aims to boost capacity, integrate complementary businesses for a diverse energy mix, and cut emissions while meeting environmental standards.
Sources:
https://www.philstar.com/business/2025/02/24/2423666/smgp-earmarks-p87-billion-baseload-expansion
https://businessmirror.com.ph/2025/02/24/san-miguel-power-arm-set-to-go-on-expansion-binge/
