By
Lenie Lectura- May
21, 2018
SAN Miguel Corp. (SMC) and Aboitiz Power Corp. (AboitizPower) said on
Monday they would look into AC Energy Inc.’s thermal-energy assets that
are up for sale.
“We will study,” SMC
president Ramon S. Ang said in a text message when asked if SMC’s power unit is
interested.
The power
portfolio includes the Sual Power Plant in Sual, Pangasinan; San Roque
Hydroelectric Multipurpose Power Project in San Manuel, Pangasinan; and Ilijan
Power Plant in Ilijan, Batangas, among others.
Separately,
AboitizPower President Antonio Moraza said the company is always on the lookout
for opportunities.
“AboitizPower will look
at any potential deals that are available. Unfortunately, there are potential
deals that may or may not carry NDA [nondisclosure agreement] in which case, we
are not free to comment,” he said.
When pressed to comment
if the company is interested considering that Aboitiz and AC Energy have
already teamed up in a coal-power project in Bataan, Moraza may have hinted
there could be a deal in the making. “We can’t comment on potential deals
that have NDA. You’ll have to wait.”
Aboitiz and AC Energy
are constructing the first unit of the 2×668-megawatt (MW) coal-power
project being undertaken by GNPower Dinginin Ltd. Co. (GNPD),
composed of Therma Power Inc. (TPI), a wholly owned subsidiary
of Aboitiz Power Corp.; AC Energy; and Power Partners Ltd. Co., a partner
of AC Energy.
AC
Energy and TPI each have a 50-percent beneficial economic interest
in the GNPD project. The estimated project cost of the GNPD project is
$1.7 billion. Construction of the first unit is well under way, and
is targeted for commercial operations by 2019, with the second unit scheduled
for completion by 2020.
Last Sunday AC Energy
announced it is currently in discussions with potential investors to sell as
much as 50 percent of its thermal assets in a bid to balance its renewable and
thermal portfolios.
AC Energy’s entire
power-generation portfolio of 1,600 MW carries an estimated value of $2.6
billion, according to investment group CLSA Ltd. Of the $2.6
billion, 80 percent, or $2 billion, is thermal assets.
Eric Francia, President
and CEO of AC Energy, said the sale is also meant to raise capital to support
growth as the company expands in the region.
“While we will grow our
renewables exponentially, we shall continue to grow our thermal platform in the
Philippines and around the region,” he added.
AC Energy has 1.3 MW of
conventional power and around 300 MW of renewable-energy (RE) projects.
Its RE projects are the
52-MW Northwind Power Development Corp. in Bangui, Ilocos Norte; the 81-MW wind
farm in Pagudpud, Ilocos Norte, through its affiliate NLREC; and the 18-MW
solar plant in Negros Oriental, a joint undertaking with Bronzeoak Clean Energy
Inc.
Meanwhile, its
conventional power projects include the 668-MW GN Power Dinginin Ltd. Co. coal
plant in Bataan; the 604-MW GNPower Mariveles; the 2×135-MW coal-fired power
plant in Calaca, Batangas, under South Luzon Thermal Energy Corp.; and the
4×135-MW coal-fired power plant in Kauswagan, Lanao del Norte, in Mindanao
through GN Power Kauswagan Ltd. Co.
The company is
currently active in developing RE projects overseas in a bid to grow its
presence in Southeast Asian markets.
In January Ayala
Corp. announced it divided its energy business into two wholly owned
subsidiaries—AC Renewables Inc. and ACE Thermal Inc.
All renewable
assets were put under AC Renewables and its existing thermal holdings
company will be renamed ACE Thermal. AC Energy remains its umbrella brand
for its energy group of companies.
Francia said the
restructuring would allow the group more flexibility to pursue developments in
renewables and conventional power.
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