Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Jera to buy stake in Aboitiz unit, plans LNG-to-power projects in Philippines

Japan’s LNG trading giant Jera has decided to buy a 27 percent stake in Aboitiz Power, as it also revealed plans to develop LNG-to-power projects in the Philippines.

Jera said on Monday it has executed a share purchase agreement with Aboitiz Equity Ventures and Aboitiz & Company worth about $1.58 billion.

Aboitiz Equity Ventures is the public holding company of the Aboitiz Group with major investments in power, banking and financial services, food, infrastructure, and land.

Completion of the transaction, subject to necessary approvals, would further enhance Jera’s presence in the Philippines’ energy sector. Working in conjunction with Aboitiz Power, Jera hopes to “significantly advance the expansion of clean and renewable energy in the country,” it said.

Aboitiz Power, listed on the Philippines Stock Exchange, is the holding company for the Aboitiz Group’s investments in power generation, distribution, and retail electricity services.

The company is one of the largest power producers in the Philippines with a balanced portfolio of assets located across the country and owns distribution utilities that operate in high-growth areas in Luzon, Visayas, and Mindanao, including the second and third largest private utilities in the country, Jera said.

9.2 GW capacity

Aboitiz Power aims to expand power generation capacity to 9.2 GW and achieve a 50:50 clean energy and thermal capacity mix by 2030 to meet the increasing demand for electricity in the future while promoting renewable energy in the Philippines,

At the same time, Jera is working to eliminate CO2 emissions from its domestic and overseas businesses by 2050 under its 2050 objective.

LNG-to-power

Jera and Aboitiz Power are exploring a number of areas of collaboration including the potential joint development of power projects such as LNG-to-power, collaboration on new generation technologies, and potential participation in aspects of plant O&M, the Japanese firm said.

The joint venture of Tepco and Chubu Electric has also signed a memorandum of understanding with Aboitiz Power to collaborate in fuel sourcing and management of the LNG required for potential power plants which can supplement intermittent renewable energy, it said.

In addition, the duo are collaborating on a roadmap to reduced CO2 emissions in the Philippines, and will work together to explore potential opportunities to develop “zero-emission thermal power generation” technologies that Jera is developing in Japan.

Such technologies avoid CO2 emissions during power generation by using “green fuels such as ammonia and hydrogen,” Jera said.

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.

These include the project led by Singapore’s downstream LNG player AG&P but also First Gen’s Batangas development.

Most Popular

Atlantic LNG shipping rates, European prices down

Atlantic LNG freight shipping rates and European prices decreased this week compared to the week before.

Glenfarne becomes majority owner of Alaska LNG

US energy firm Glenfarne has signed definitive agreements with state-owned Alaska Gasline Development Corporation to become the majority owner of the giant Alaska LNG export project.

Petronas to supply LNG to PetroVietnam Gas

Malaysian energy giant Petronas will supply liquefied natural gas (LNG) to PetroVietnam Gas, a unit of state-owned PetroVietnam, next month. The two firms will also look into the possibility of signing long-term LNG contracts.

More News Like This

Jera and EDF expand LNG trading JV to include Japanese power trading

Japan’s Jera and France’s EDF have agreed to expand their LNG and coal trading joint venture, Jera Global Markets, to include Japanese power trading.

Vitol seals 10-year SPA to supply LNG to Philippines

Geneva-based energy trader Vitol has signed a 10-year sales and purchase deal with LNGPH to deliver LNG to Batangas, Philippines.

Japan’s Jera launches third LNG unit at Goi power plant

Japan’s Jera has launched the third and final new LNG unit at its Goi thermal power plant in Chiba as part of a replacement project.

Three firms seal $3.3 billion LNG-to-power deal in Philippines

The three firms announced in separate statements on Tuesday the completion of the transaction. The transaction involves the acquisition by...