NEGROS, Philippines — SMC Global Power Holdings Corp., the power unit of diversified conglomerate San Miguel Corp. (SMC), plans to invest P18.5 billion for a 300-megawatt (MW) liquefied natural gas (LNG) combined cycle power plant in Negros Occidental.
In a filing with the Department of Environment and Natural Resources (DENR), SMC Global’s wholly owned unit Reliance Energy Development Inc. (REDI) is proposing a 4×75-MW LNG Combined Cycle Power Plant within the San Carlos City Ecozone in San Carlos City, Negros Occidental.
The proposed project, which has an estimated project cost of P18.5 billion, will be constructed inside the 49-hectare leased property from Grand Planters International Inc.
An on-shore LNG terminal facility will be constructed adjacent to the power plant to store and re-gasify the LNG that will be delivered through barging.
REDI is targeting to start constructing the power project in the third quarter with completion eyed in the third quarter of 2024. It is in the process of pre-feasibility study and environmental compliance certificate (ECC) application.
The company considered different technologies for the project, such as natural gas, coal, wind and solar, but chose natural gas since it is more flexible, secured, environmental-friendly and cost-effective.
Moreover, the Department of Energy issued a moratorium on new coal-fired power plants in 2020 to support the government’s direction towards clean energy, removing coal from REDI’s list of considerations.
REDI said its proposed power plant would help augment the demand for reliable and affordable power supply.
“The proposed power plant will not only supply enough electricity to Filipino households and businesses, but will also contribute to national development. The proposed project will also support DOE’s advocacy to shift to cleaner source of energy to reduce the GHG emissions from the energy sector,” it said.
However, for consumer welfare group, Koryente Konsumers Alliance, an LNG power plant will only lead to increase power rates in the area.
“We have not explored indigenous fuel sources so the country will have to import LNG. LNG is a fossil fuel like oil, diesel and gas. The world market price is just as high and it is hard to secure supply due to the ongoing war between Russia and Ukraine. Although, we have Malampaya in the country, the well is set to dry up very soon and the country has not explored new areas to replace it.
Especially for Negros Island let us explore other sources of power like Mini-Hydro, Wind, Solar, and most especially Bagasse cogerneration with the Sugar Mills.
Negros being the sugar capital of the country with numerous sugar mills, let us increase the congeneration capacity of all sugar mills to create power.”