SMC to build power plant on Mactan Island

CEBU CITY – Mactan Island will soon become home to Cebu’s biggest power plant after the SMC Global Power Holdings signified its intention to invest in a liquefied natural gas (LNG) power plant in Lapu-Lapu City to provide base load power to the grid.

SMC Global Power Holdings is investing in a 600-megawatt (MW) liquefied natural gas power plant on Mactan Island. Located specifically in Lapu-Lapu City, the project will cost between $1.5 and $1.7 million per MW, for a total of $900 million to $1.2 billion (P47.2-P63 billion).

The power plant will be built in a leased 26-hectare area leased from Keppel Cebu Shipyard Land, Inc. and the National Development Company. SMC Global Power Holdings is the power arm of San Miguel Corporation (SMC).

This was also reported by Power Philippines which said the construction of the plant would take around five years beginning in the third quarter of this year while testing and commissioning is scheduled for the fourth quarter of 2023. Commercial operations are slated for the second quarter of 2024. 

“The project aims to help augment demand for reliable and affordable power supply. Other than being able to provide electricity to households and businesses, it will be contributing to national development,” SMC Global Power subsidiary Converge Power Generation Corporation (CPGC) said in its filing with the Department of Environment and Natural Resources. 

Data from the Department of Energy’s (DOE) Power Development Plan shows that the country’s power demand will grow five percent a year and will reach 49,287MW by 2040. “The 600 MW additional capacity will support the program of the DOE in ensuring stable power supply for the Philippines,” CPGC said.

Lapu-Lapu Mayor Junard Chan thanked SMC for investing in Mactan, a densely populated island which is part of Cebu province. “Dako nakong pasalamat nga aduna na poy laing kadaugan nga makab-ot ang atong syudad nga mao ang intensyon sa San Miguel Corporation nga mo-invest og usa sa pinakadakong power plant diri sa Cebu gamit ang LNG kon liquified natural gas,” Chan said.

He said SMC will invest some P60 billion for the construction of the 600-megawatt power plant which will help solve the electric power supply woes not only in Mactan Island, but the entire province.

Chan said it will give jobs to the residents of Mactan Island. “Dili na usab makasinati puhon ang mga Oponganon og problema sa kuryente lakip na ang silinganang mga dakbayan,” he said, referring to the island’s inhabitants.

The mayor said the local government’s effort to tap investors is bearing fruit now that the SMC, the country’s largest and most diversified conglomerates, showed interest in investing in a business venture in the city. “Nagpasabot lang kini nga ang atong administrasyon karon duolonon gayud sa mga investors o dagkong mga mamuhonan kay dako ang ilang pagsalig sa atong pagdumala ug pagpangga sa mga katawhang Oponganon,” he said.

Lapu-Lapu City, including the island villages of Olango, and the municipality of Cordova, is under the distribution franchise area of Mactan Electric Company. 

SMC Global Power is also working on a 300MW LNG combined cycle power plant in San Carlos City, Negros Occidental, which is currently facing environmental and economic concerns from local stakeholders and energy advocacy groups. The diversified conglomerate is also working on another 600MW LNG plant project in Tabango, Leyte worth P41.5 billion. (Cebu Examiner and John Rey Saavedra)