A Brown ventures into LNG business

MANILA, Philippines — A Brown Co. Inc. (ABCI) is venturing into the liquefied natural gas (LNG) business with plans to acquire an LNG terminal and power plant developer.

In a disclosure to the Philippine Stock Exchange yesterday, A Brown said it signed a memorandum of agreement (MOA) with Argo Group Pte. Ltd.

The MOA details the possible acquisition by A Brown of approximately 99.995 percent of the outstanding capital of Vires Energy Corp. (VEC) owned by Argo Group.

VEC is the proponent for the integrated floating LNG storage and regasification terminal and the 506-megawatt (MW) floating natural gas-fired power plant located in Barangay Simlong, Batangas City.

“The MOA entered into is a preliminary agreement and the prospective acquisition will be concluded after the completion of the customary due diligence period of a maximum period of 180 days,” A Brown said.

VEC has secured incentives from the Board of Investments for its pioneer floating LNG power plant, which is targeted to start operating in 2023.

It has expressed its interest to develop LNG facilities in the country.

A Brown is also a key player in real estate and agribusiness in Southern Philippines with investments in mining and infrastructure.

It also has investments in power through subsidiaries Peakpower Energy Inc. and Palm Thermal Consolidated Holdings Corp. (PTCHC).

PEI has a 55-MW of bunker-fired power plants, serving various electric utilities in General Santos, Agusan del Sur, and part of Bukidnon. It is eyeing to develop around 70 MW additional peaking capacity across the country next year.

PTCHC, on the other hand, has a joint venture with Jin Navitas Resource Inc. under Palm Concepcion Power Corp., the project company for the 2x135-MW coal-fired power plant project in Concepcion, Iloilo.

So far, it has put up the first 135-MW coal plant which started commercial operations on Aug. 16, 2016.

A Brown, through Hydro Link Projects Corp., also has Hydropower Service Contracts where permits and requirements are being secured to proceed to project implementation.