2-GW LNG power facility rising at Aurora ecozone
An American company is lining up an initial P9.45-billion investment to build a liquefied natural gas (LNG)-fired power generation and substation facility in an ecozone in Casiguran, Aurora, which the government hopes to develop into a hub for data centers and defense-related industries.
It will be developed by Texas-based ARQ Development Corp. LLC in partnership with Philippine firms SC Megaworld and HML Technologies, according to the Aurora Pacific Economic Zone and Freeport Authority (Apeco), which oversees the Casiguran estate.
This proposed facility will initially have a capacity of 50 to 100 megawatts (MW), with plans to scale up to 500 MW by its third year of operation before eventually reaching a target capacity of 2,000 MW, or 2 gigawatts (GW).
If realized, the project could make Apeco the country’s first ecozone powered by LNG-based generation.
“This will help improve the availability and affordability of power not just in the ecozone but also in the province of Aurora and the country,” Apeco president and CEO Gil Taway IV said in a statement.
“As we prime our ecozone for investments from various industries, we continue to do the legwork in securing reliable and clean power sources to ensure the smooth operations of our locators,” Taway added.
A feasibility study will be conducted to assess project viability under a memorandum of understanding signed between Apeco and the three companies.
The study will also look into the potential expansion of the ecozone’s existing electrical infrastructure.
Taway, who is leading Apeco’s seven-day investment mission to the United States, said securing LNG-based power supply was crucial to the agency’s ambition of attracting hyperscale data centers and defense-related industries to the 12,923-hectare ecozone.
Hyperscale data centers alone could require as much as 100 MW of electricity each.
“Investors look for more than just scalable land when seeking a location; they also look for the presence of reliable power sources, adequate water supply and digital connectivity that can support their uninterrupted operations. This is why we are developing the ecozone’s critical energy infrastructure,” he added.
The latest agreement follows a separate deal between Apeco and China-linked solar panel manufacturer Huge Energy Co. Ltd. to explore the development of a solar photovoltaic facility with a potential capacity of about 1 GW.
