ENEX Energy, previously known as ACE Enexor, is planning to start work on a power plant that will source natural gas from a nearby LNG import facility later this year in order to meet the Philippines’ growing energy demand.
In January 2022, Gen X Energy, a Singapore-based company owned by US-based private equity firm Blackstone, and Ayala Group’s ACE Enexor agreed to jointly develop an LNG and hydrogen power plant in the Philippines.
Moreover, the 50/50 JV Batangas Clean Energy will develop a 1,100-megawatt combined-cycle gas turbine power plant in Batangas province.
According to a statement by ENEX Energy issued this week, construction on the power plant is scheduled to start in 2023.
“We would like to clarify that while Batangas Clean Energy is continuing with the various permitting requirements for the project, the company is still in continued discussions with its joint venture partner in BCE, Gen X Energy LLC, on the details of the project and that no final investment decision has been made to date,” the firm said.
ENEX Energy expects the LNG power plant to start commercial operations in the second half of 2026 and operate for 50 years or longer.
The project would rise on 24 hectares of onshore land and 15 hectares of foreshore area in Barangay Libjo and Barangay Malitam, Batangas City, the firm said.
Philippines to start importing LNG
The Philippines has several LNG import facilities on the table as the Malampaya gas field becomes less reliable in producing and providing sufficient fuel supply for the country’s existing gas-fired power plants.
In October, Singapore’s LNG firm AG&P said it plans to launch its LNG import terminal in the Philippines by March 2023.
AG&P claims this would be the first LNG import terminal in the Philippines.
First Gen is also working on its Batangas FSRU-based LNG import terminal and plans to launch it this year as well.