SMC allots $4.2B to build 5 more power plants in Luzon, Mindanao

by Lenie Lectura – May 18, 2016

from Business Mirror

DIVERSIFIED conglomerate San Miguel Corp. (SMC) is earmarking about $4.2 billion to put up five power plants in Luzon and Mindanao, with a total capacity of 2,100 megawatts (MW).

SMC President Ramon S. Ang said, after the Petron Corp. stockholders’ meeting, three of the power plants would have a capacity of 300 MW. Each plant will have a power-generating capacity of 300 MW. The three plants will all be located in Mindanao, where the company plans to construct three industrial estates.

“Bawat industrial site magtatayo tayo ng power plant. Each site, may tig-300 MW na planta. If mayron need for additional requirement, magdadagdag tayo,” Ang said.

 He pegged the cost of the power project at $2 million per megawatt. Ang confirmed the project cost for the three power plants in Mindanao could reach $1.8 billion.
“It is our intent to put up industrial estate in Mindanao to create more jobs. This will also attract local and foreign investors to relocate in those areas, because power rates would be cheap,” Ang said.
He did not say the target completion and commercial operation of the three power plants. The other two power plants would be located in Luzon. These are the 600-MW coal plant in Pagbilao, Quezon, under Central Luzon Premiere Power Corp. (CLPPC); and another 600-MW coal plant under Mariveles Power Generation Corp. (MPGC) in Bataan.
SMC has already inked a power-supply agreement with the Manila Electric Co., which, in turn, will buy the two plants’ output.

Meanwhile, Ang said Petron is expected to post P15 billion to P18 billion in net income this year, nearly triple the P6.27 billion it posted in 2015.

“We are targeting P15 billion to P18 billion in net income this year. More efficient ang oil refinery namin because we just finished upgrading it,” Ang said.

Petron intends to build more retail stations to further cement its market share in the petroleum business.