SMC Global, AG&P team up for works on Ilijan LNG hub

MANILA, Philippines — SMC Global Power Holdings Corp., the power unit of San Miguel Corp., is in the advanced stages of executing the binding terminal use agreement (TUA) term sheet for the proposed liquified natural gas (LNG) terminal in Batangas.

“As of August 2020, the company is in advanced stages of executing a binding term sheet on the TUA with AG&P to provide LNG receiving, storage and regasification services to the Ilijan Power Plant and the Ilijan expansion,” SMC Global Power said.

“The planned Ilijan LNG terminal will be developed by AG&P LNG Terminals and Logistics, with EPC (engineering, procurement and construction) work handled by AG&P Construction Solutions,” SMC Global Power said.

AG&P has extensive expertise in LNG regassification technologies and the development and execution of LNG infrastructure solutions to utilize natural gas for retail and power plant use.

The company has acted as EPC contractor or technical partner for various LNG projects around the world such as the Bali Hybrid LNG Terminal, the Karaikal LNG Terminal and Osaka Gas.

“As the foundation customers, SMC’s power plants will also be the priority terminal users for the terminal and its capacity,” it added.

The company added that the terminal is planned to be commercially operational by June 2022, in time for the expiration of the Ilijan IPPA.

SMC Global Power, through its subsidiary South Premiere Power Corp., is the independent power producer-adminstrator of the output of the Ilijan plant.

Last year, SMC president and COO Ramon Ang said its 1,200 megawatt plant, Ilijan natural gas power plant is ready to be expanded into an LNG facility.

However, he said the company would have to wait first for the market to become more viable for LNG.

In the first half of the year, the company posted a 25 percent rise in its net income to P9.06 billion from P7.26 billion in the same period last year.