Ayala-owned Enex Energy Corp. (Enexor) is terminating its joint venture with GenX Energy LP for the proposed P60 billion, 1,100-megawatt combined-cycle gas turbine in Batangas and is no longer pursuing the project’s development.
In a disclosure to the Philippine Stock Exchange on Friday, Enexor said the company’s executive committee, acting under the authority delegated by the board, approved the discontinuation of the proposed Batangas Clean Energy (BCE) project, which was in its pre-development stage.
The committee also approved mutual termination of the joint venture with US-based Blackstone Inc. portfolio company GenX Energy for the project.
“This decision was driven primarily by the difficulty in securing an off-take contract to ensure the BCE project’s viability, coupled with challenges in securing a third investor due to uncertainties surrounding the project’s off-take arrangements,” the company said.
“Furthermore, this decision aligns with ENEX’s parent company’s (ACEN Corporation) strategic shift toward renewable energy generation,” it said.
ACEN is the power arm of the Ayala Group. Enexor, formerly ACE Enexor Inc., acquired a 50 percent stake in BCE in 2021.
The proposed project was supposed to source natural gas from a nearby liquefied natural gas (LNG) import facility. The project is located on 24 hectares of onshore land and 15 hectares of foreshore area in Barangay Libjo and Barangay Malitam, Batangas City.
The power plant would have the flexibility to burn up to 50 percent (by volume) clean hydrogen as a supplemental fuel when hydrogen becomes commercially available and supply 5 percent to 10 percent of the Luzon grid’s power requirements.
It said green hydrogen, produced by electrolysis of water using cheap renewable power from wind, solar, geothermal or hydropower, or by steam reforming of biogases, will be either imported or produced domestically.
Enexor’s remaining asset is the Cinco oil and gas prospect under Petroleum Service Contract 55 (SC 55). It is estimated to contain 1.3 trillion to 2.4 trillion cubic feet of gas and 45 million barrels of oil.
Enexor has a 75 percent interest in SC 55 in offshore West Palawan through its subsidiary, Palawan55 Exploration & Production Corporation. The remaining 25 percent is owned by Pryce Gases.
