Aboitiz Power Backs LNG, Renewables for Energy Transition

Aboitiz Power Corporation has identified liquefied natural gas (LNG) as a crucial element of its strategy to support the Philippines’ growing energy demands while maintaining a balanced and diversified energy mix.

During the company’s annual stockholders’ meeting, Chief Commercial and Stakeholder Engagement Officer Danel Aboitiz said, “We view liquefied natural gas, or LNG, as a natural next step for Aboitiz Power.”

“LNG provides reliable, dispatchable capacity, and with its flexibility can serve as an enabler for integrating more variable renewable energy into the country’s energy mix,” Aboitiz added.

While coal-fired power plants will continue to play a significant role, Aboitiz Power emphasized that LNG, renewables, and energy storage systems are expected to account for a larger portion of the energy supply in the coming years.

“While we expect coal plants to continue to play a key role in the country’s energy landscape, particularly since the Department of Energy stated that there are still considerable committed capacities from before the coal moratorium, we also expect that LNG and renewable energy, along with energy storage systems, will have an increased share of the energy pie in the coming years,” Aboitiz said.

This initiative aligns with Aboitiz Power’s collaboration with Meralco PowerGen Corporation (MGen) and San Miguel Global Power Holdings Corp. (SMGP) in a $3.3 billion USD investment to build the country’s first integrated LNG facility in Batangas.

The joint venture, Chromite Gas Holdings Inc., covers the acquisition of a 67 percent stake in two gas-fired power plants and the LNG import and regasification terminal operated by Linseed Field Corp.

Aboitiz Power’s approach reflects a balanced energy portfolio strategy, combining traditional sources with renewable energy and emerging technologies like battery energy storage systems.

The company said this integrated approach is critical to ensuring the Philippines’ energy security while supporting a sustainable and resilient transition.

Aboitiz Power’s efforts come amid growing domestic energy demand, driven by rapid urbanization, industrialization, and the need for stable baseload supply to power the economy.

According to the Department of Energy, the Philippines is expected to experience a steady increase in electricity demand, with a projected annual growth rate of about 6 percent over the next decade.