Petron resells Limay power plant to affiliate SMC Powergen

Petron Corp. plans to resell its 140-megawatt (MW) Limay power plant to affiliate SMC Powergen Inc.

In a statement yesterday, Petron said it signed a memorandum of understanding (MOU) with SMC Powergen for the sale of its solid-fired power plant in Limay, Bataan.

SMC Powergen is a subsidiary of SMC Global Power Holdings Corp., the power generating arm of San Miguel Corp.

Under the MOU, SMC Global Power will conduct a preliminary review of the power plant and its operations over a sixmonth period to determine the feasibility of possibly acquiring the facility.

The power plant, which has a rated capacity of 140 MW, supplies the power requirements of Petron’s 180,000 barrelsper-day refinery in Bataan.

The 2x35-MW power plant was previously owned by Petron until it was acquired by SMC Powergen in September 2013.

SMC Powergen doubled the capacity of the plant in the second half of 2014, adding 140 MW to the total capacity of Present during the signing are (from left) Petron SVP and CFO Emmanuel Eraña, Petron general manager Lubin Nepomuceno, SMC Powergen general manager Elenita Go, and SMC Powergen director Ferdinand Constantino. SMC Global Power by the end of that year. Most of the contributions came from

But in 2016, Petron reacquired the said its Malaysian operations, which showed power plant from SMC Powergen. strong results.

Petron booked a net income of P2.6 Philippine sales also reflected decline billion in the first half, a significant drop in volume due to the implementation of from the P9.5 billion reported in the the second tranche of the Tax Reform for same period last year due to the slump Acceleration and Inclusion (TRAIN) Act, in regional refining margins that penalize which brought total fuel taxes to an averPhilippine operations by as much as age of P6.75 per liter equivalent to over P5 billion. P15 billion excise taxes for the first half.