MANILA, Philippines - Meralco PowerGen Corp. (MPG) is planning to put up a liquefied natural gas-fired power plant in Batangas. 

MPG on Thursday signed a memorandum of understanding with Shell Companies in the Philippines (SCiP) for the possible supply of LNG for the power plant. 

Under the MOU, MPG will do a feasibility study of the power plant, with both facilities located side-by-side on a site along the Department of Energy’s proposed Batangas-Manila pipeline near SCiP’s Tabangao refinery in Batangas. 

"The setting up of an LNG-based combined cycle power plant is meant to address fuel diversification as well as address the mid-merit capacity needs of the Luzon grid. This collaboration with SCiP helps pave the way for facilities that ensure a reliable and competitively-priced power supply," said MPG executive vice-president and general manager Aaron A. Domingo.

LNG is natural gas converted into a liquid state for easier storage and transportation. Upon reaching its destination, LNG is regasified and can be distributed through pipelines as natural gas to target facilities. 

MPG is developing a diversified power portfolio of up to 2,500 MW from now until 2020.