8 Philippine companies make it to Forbes' list of top global firms

The listed holding company of the country's richest man is the top-ranking Philippine firm in Forbes' list of the world's biggest public corporations.

SM Investments Corporation, which earns its keep from banking, property and retail, landed in the top 1,000 at 911th place among the world's top 2,000 publicly-listed firms. Joining SM were two Ayala-owned firms (BPI and Ayala Corporation), two companies chaired by businessman Manuel V. Pangilinan (PLDT and Meralco), George Ty-owned Metrobank, John Gokongwei's JG Summit and Top Frontier Investment Holdings Inc, which is owned by San Miguel Corporation.

Here are the screen grabs of Forbes' profiles on the eight companies:









- Interaksyon

Meralco mulls conversion of Atimonan natural gas project to coal

Meralco PowerGen Corp is mulling the conversion of the company's liquefied natural gas project in Quezon to a coal-fired power facility.

Angelito U. Lantin, Meralco PowerGen Corp senior vice president and general manager, told InterAksyon.com that the company is now undertaking studies for the construction of a coal plant instead of a 1,500-megawatt (MW) LNG-fired facility in partnership with Japanese firm Chubu Electric Power Corp.

The latter said that the decision was brought about by the lack of government policy support for the nascent LNG industry.

"We are studying the site for a coal plant now. Kasi yung LNG as we have explained before --power produced from an LNG plant is more expensive than from coal. So we need the government's policy [or] if the government will support, for example, a higher price for LNG as an option to coal," he said.

Government has been trumpeting the development of the LNG industry to help secure the country's future power needs and electricity rates, especially with the Malampaya natural gas field in offshore Palawan projected to be depleted by 2024.

However, Energy Secretary Carlos Jericho L. Petilla earlier said that while LNG is less costly than coal in other markets, it is still more expensive to bring into the country because of logistics costs.

LNG prices in the international market have also been on an upswing due to growing demand worldwide and a recent US policy aimed at cutting carbon emissions from coal plants.

To ensure that the industry will take off, the government and the World Bank are currently laying down a natural gas master plan that will outline the needed regulatory and policy framework.

Phases 1 and 2 of the plan will be on the establishment of an investment and transactional framework, which the DOE and its advisers are nearing completion of. The phase 3 will involve the creation of a natural gas master plan for the longer term.

"Pero wala pa yun (master plan) eh, we cannot wait because the country needs more power. So we are studying it," Lantin said. "Maybe by end of the year meron na kami idea pano kami mag proceed. It depends on what the government's policy on LNG. So they're doing some studies and coming up with an LNG master plan pero hinihintay pa namin. "

The Luzon grid is projected to be short of 200 MW for the summer months next year due to regulatory and technical delays in the construction of power plants.

- Interaksyon

Meralco subsidiary proposes P182-million expansion of Clark facility amid higher demand

Meralco’s subsidiary at the Clark Freeport Zone is seeking regulatory approval for an expansion of its distribution capacity in light of growing demand in the economic zone.

In a filing with the Energy Regulatory Commission (ERC), the Clark Electric Distribution Corp (CEDC) proposed the construction and installation of a new 100-megavolt ampere (MVA) 230-kiloVolt/68 kiloVolt power transformer at its substation.

The new transformer and related equipment would cost P182.25 million, and would result in an increase of P0.04 per kilowatt-hour in the rates of CEDC customers.

The proposed equipment will address the electricity requirements of a number of new locators and the expansion of existing ones scheduled by mid-2014.

Additional demand would come from Taiyo Nippon Sanso Clark Inc's air separation plant, which requires 9 megawatts (MW); the Medical City Hospital, 3.59 MW; the Midori Hotel, 1.40 MW; the Widus Hotel expansion, 1.09 MW; SM's two business process outsourcing multi-storey buildings, 1.75 MW; MSK's industrial development, 3.51 MW; SIA Engineering's expansion, 1 MW; and Yokohama Tire Philippines' load growth, demand from which was not specified.

"These additional loads will be on top of the growth of native load of 5.79 percent in [regulatory year] 2012-2013 and the expected development of the new areas within the Clark Freeport Zone," CEDC said.

Without the construction of the new 100-MVA power transformer, CEDC said the 80 MW limit of the transmission lines that deliver power to the utility will be breached, resulting in overloading.

This "would make it impossible to accommodate these large load projects," CEDC said.

CEDC is 65 percent owned by Manila Electric Co, through subsidiary Meralco Industrial Engineering Services Corp (MIESCOR). The Angeles Electric Corp owns the remaining 35 percent.

- Interaksyon

Meralco signs 25-year deal to distribute power within Cavite ecozone

The country's biggest power retailer has signed a 25-year deal to distribute electricity within the Cavite Ecozone (CEZ).

In a disclosure to the Philippine Stock Exchange, Manila Electric Co (Meralco) said it entered into a concession agreement, effective until May 2039, with the Philippine Export Processing Zone Authority (PEZA) for the operations and maintenance of the power distribution facilities in CEZ.

PEZA is the agency tasked to promote investments, assist, register, grant incentives to foreign investors in export-oriented manufacturing and service facilities operating inside economic zones.

In the first quarter, Meralco earned a P4.1 billion, which is about the same level as last year.The flat growth was blamed on soft electricity consumption due to consumers' growing access to energy efficient lighting and appliances.

Concerns on electricity prices also had an impact on consumption, the utility's executives said.

- Interaksyon