Batangas Clean Energy Inc., a company controlled by taipan Lucio Tan, plans to put up a 1,100-megawatt combined cycle gas turbine power plant in Batangas City alongside a liquefied natural gas import terminal.
BCE, a joint venture of Gen X Energy, LLC and LCT Energy and Resources Inc., plans to start construction of the integrated LNG project in 2021 with completion eyed by 2025.
“The project will begin its commercial operations by January 2025 and will be operational for 50 years,” the company said in documents filed with Department of Environment and Natural Resources.
The LNG terminal and power plant which rise within a 38-hectare property in the boundaries of Barangay Pinamucan Ibaba and Pinamucan Proper, Batangas City.
The LNG terminal will include a jetty, an LNG storage tank and regasification facilities with a throughput capacity of up to three million tons per annum.
“The CCGT power plant will use the natural gas from the LNG terminal as fuel and will have a gross installed capacity of approximately 1,100 megawatts. Electricity from the CCGT power plant will be delivered, via a double-circuit high voltage transmission line to the National Grid Corporation of the Philippines’ 500kV transmission system,” BCE said.
The company decided to establish a world-class LNG and power plant to meet the Philippines’ growing demand for reliable, sustainable and affordable power.
It also aims to replace the source of natural gas in preparation for the depletion of the Malampaya gas field, ensure energy security, reduce the country’s carbon footprint and support the integration of renewable energy by providing flexible generation to the grid.
This is expected to develop a downstream natural gas industry in the Philippines and contribute to the economic development of Batangas.
BCE also wants to position Batangas City as the LNG hub of the Philippines.
“Batangas City appears to be the most viable location given its accessibility and the presence of industries that can support the project. The project location, which is an industrial zone, also has established transport modes and navigation routes which is advantageous for the project,” it said.
Tan owns and operates Himmel Industries Inc., Total Bulk Corp. and Tanduay Distillers Inc., all of which are located within the proposed project site of BCE.
Tan and his immediate family owns LCT Energy and has stakes in the Philippines’ largest and most respected conglomerates with interests in aviation, banking, property development, beverages, distilled spirits and tobacco.
LCT Energy’s partner Gen X Energy is a Blackstone portfolio company, with the sole objective of making investments in energy projects in Asia. Blackstone is one of the world’s leading private equity funds with a proven track record in energy investments.
BCE earlier applied for a notice to proceed with the Department of Energy for the LNG project.
“It’s a consortium. Their captive market [includes] JG Summit, Tanduay, Eton, Asia Brewery. Their business model, or captive market, to assure viability [includes] Tanduay, Asia Brewery, Eton, JG Summit and others,” Energy Undersecretary Donato Marcos said earlier.