SMC Global Power Holdings Corp., the power unit of San Miguel Corp., is lining up four major greenfield plants with a combined capacity of 2,135 megawatts over the next four years.
SMC Global said in a report to Philippine Dealing & Exchange Corp. the projects included the 335-MW Masinloc power plant (Unit 3) in Zambales that would be completed by December.
It said the engineering, construction and procurement contract of the 350-MW Masinloc Unit 4 was being finalized in line with the target to complete it by 2024.
The company is also developing the 600-MW Mariveles circulating fluidized bed technology coal plant in Bataan province, with the first 300-MW unit eyed for completion by 2022 and the second 300-MW unit by 2023.
SMC Global said it is expanding the 1,200-MW Ilijan combined cycle power plant in Batangas province by another 850 MW. This is expected to start commercial operations by 2023.
SMC Global short-listed six EPC contractors for the Ilijan power plant expansion, including Siemens, MHPS, Formosa Heavy Industries, B&V, POSCO Engineering & Construction Co. Ltd. and Dailem.
“The company intends to use the capacity of its greenfield power plants to bid for the upcoming 1,800 MW Meralco bid and other capacities for CSP [competitive selection process],” the company said.
SMC Global said it would fund the projects through 30-percent equity and 70-percent debt.
The company is also talks with AG&P for the construction of a liquefied natural gas terminal alongside the Ilijan power plant in Batangas.
“As of August 2020, the company is in advanced stages of executing a binding term sheet on the terminal use agreement with AG&P to provide LNG receiving, storage and regasification services to the Ilijan power plant and the Ilijan expansion,” SMC Global said.
Based on the TUA, SMC negotiated “priority status” for the Ilijan LNG terminal over all projects of AG&P. As the foundation customers, SMC’s power plants will be the priority terminal users for the terminal and its capacity.
The company’s supply of natural gas to the Ilijan power plant is set to expire by June 2022 to coincide with the end of its independent power producer agreement with the government. Upon expiration of the Ilijan IPPA, SMC Global subsidiary South Premiere Power Corp. will become the legal owner and operator of the Ilijan power plant.
The LNG terminal is expected to be commercially operational by June 2022, in time for the expiration of the Ilijan IPPA.