Meralco in talks with Osaka Gas for USD 2-B gas plant venture in PHL

By , on February 26, 2015

Photo courtesy of Meralco / Facebook
Photo courtesy of Meralco / Facebook

MANILA — Largest distribution utility firm Manila Electric Company (Meralco) is in talks with Japan’s leading energy supplier over the construction of a USD 2-billion gas plant in the Philippines in an effort to augment power supply in Luzon.

Meralco chairman Manuel V. Pangilinan said Osaka Gas is keen to construct a gas plant in the country with a capacity of 1,200 to 1,500 megawatts (MW) with Meralco.

“It (project) might be done in phases but it’s up to 1,500 MW,” Pangilinan told reporters.

Pangilinan said the USD 2-billion investments include setting up a regasification facility.

“We have to build a regas(ification facility). There’s no more gas for that size of plant from Malampaya so we have to build a regas, import gas in LNG (liquefied natural gas) form, regas it and use that as fuel,” he said.

Pangilinan said the details of the project are under discussion.

“Because for that size of the plant, you need offtakers,” he said.

Pangilinan also expressed hope that construction of the gas plant can start in the next three to five years.

Building on gas supply business, Osaka Gas is a multi-energy provider of liquefied petroleum gasoline (LPG), electricity and other energy-related products and services.