Delays at Batangas Gas-Fueled Plant Draw Scrutiny
- April 28, 2025
Meralco’s 1,200-megawatt (MW) gas-fired power project in Batangas has come under scrutiny as the Department of Energy (DoE) expressed concern over setbacks affecting its full operational rollout.
According to DOE Assistant Secretary Mario C. Marasigan, the Batangas gas plant is operated by Excellent Energy Resources, Inc. (EERI) has yet to reach full commercial operation. Several units remain in the testing and commissioning phase, despite original plans to begin power delivery last year.
Marasigan noted, “Delivery of the kilowatt hours should start by August, but full capacity should have been made available by December 2024.”
Last year, EERI secured a winning bid in Meralco’s competitive selection process, offering 1,200 MW toward the 1,800 MW target. Power will come from its 1,275-MW combined cycle plant in Ilijan, Batangas.
EERI and SPPC are jointly backed by Meralco PowerGen Corp. (MGen), San Miguel Global Power (SGMP), and Aboitiz-led Therma NatGas Power (TNGP).
Linseed Field Corp.’s liquefied natural gas (LNG) terminal in Batangas was acquired by MGen, TNGP, and SMGP to supply fuel for SPPC and EERI’s power plants. Earlier this year, the group sealed a $3.3-billion deal to develop the country’s first fully integrated LNG hub.
Originally set to go online by May 15, the completion of the plant’s first storage unit may now be delayed until the end of the month, according to Marasigan. He warned that without EERI fulfilling its power supply agreement with Meralco, the shortfall in capacity would need to be covered by alternative power sources, leaving a potential gap in the grid’s reliability.
Pioneering LNG storage infrastructure
Earlier, MGen, SMGP, and TNGP announced that they are on track to complete the Philippines’ first onshore LNG storage hub by the end of next month.
Natural gas plants South Premiere Power Corp. (SPPC) and EERI, owned by the aforementioned leaders, scheduled a shutdown from March 29 to 31. DOE said that the temporary pause was necessary for mechanical work at the LNG terminal.
Together, the power plants will reach a total capacity of 1,350 MW, up from the original 1,300 MW.
Preparing for May’s peak demand
DOE was banking on the timely completion of Meralco’s gas-fired power project in Batangas to achieve a stable energy supply by May, when electricity demand peaks.
“We were told that by the middle of May, instead of the 1,350 MW we have from those two plants now, we will reach 2,500 MW,” Energy Undersecretary Rowena Cristina Guevara stated. “We are just hoping that other plants will not have outages.”
Because of the delay, DOE Undersecretary Felix William B. Fuentebella has urged other distribution utilities to adhere to the timelines outlined in their contracts.
“We want to prevent any problems either with the regulator and especially the inconvenience that this may bring to consumers considering that prices may be affected by delayed delivery in accordance with the contract,” he highlighted.
Monalisa C. Dimalanta, chairperson and CEO of the Energy Regulatory Commission (ERC), stated that the agency has only granted provisional approvals for Meralco’s natural gas PSAs. She added that all issues, including the delay in the gas terminal’s completion, will be considered in the Commission’s final evaluation of the cases.
Sources:
https://www.bworldonline.com/economy/2025/04/14/665902/batangas-gas-fired-power-plant-delays-flagged
