Energy World Corp. of Australia signed a P6.75-billion financing package with a group of Philippine banks to fund the construction of the first phase of the 650-megawatt liquefied natural gas combined cycle power plant in Pagbilao, Quezon province.
Energy World executive director Brian Allen disclosed to the Australian Securities Exchange the company signed an omnibus loan and security agreement for the first phase of the project involving 400 megawatts.
Development Bank of the Philippines acted as lead arranger of the syndicated term loan with Land Bank of the Philippines and Asia United Bank as joint lead arranger. Standard Chartered Bank acted as financial advisor to the company.
“Funding for the facility shall be provided by DBP and Asia United Bank… This important [financing] represents a further significant milestone in EWC’s program to bring clean and affordable power to the Philippines,” Allen said.
He said the company was also in the process of concluding another debt financing facility for the LNG hub terminal in Pagbilao.
Energy World plans complete the first 200-MW unit of the 650-MW LNG facility by March 2016 and the second 200-MW unit by June of the same year.
“The power plant will source regasified LNG from the company’s Philippines LNG hub when it is completed by early 2016. In the meantime, arrangements are being made to obtain LNG from a temporary floating storage unit,” the company said in an earlier report.
Energy World expects the project to be the first operation LNG terminal in the Philippines.
It said the LNG hub would primarily be used to facilitate the distribution of LNG and natural gas, including receipt, storage and dispatch of LNG cargoes to four main markets, namely the Energy World plant, small-scale terminal, LNG and compressed natural gas for fuels and other markets in the Asia Pacific.
“The availability of sales channels will be subject to our obtaining necessary licenses and approval, including export approval if we deiced to market the LNG outside of the Philippines,” Energy World said.
It added the location of the Energy World hub would facilitate the development of an Asian LNG spot market.
“However, we have not yet entered into any binding arrangements for the sale of LNG or gas from the Philippines hub,” Energy World said.