The proposed facility will initially have a generation capacity of 50 to 100 megawatts (MW), with plans to expand to 500 MW by the third year and eventually reach 2,000 MW, or 2 gigawatts (GW), over the long term.
APECO signed a memorandum of understanding (MOU) with American firms ARQ Development Corp. LLC and SC Megaworld, together with Philippine firm HML Technologies, to explore the phased development of the LNG-based power generation facility and substation microgrid within the ecozone.
The agreement was signed Monday at the Philippine Consulate General in Houston, Texas, during APECO's investment mission to the United States from Oct. 24 to 30.
Signatories included APECO president and CEO Undersecretary Gil G. Taway IV, ARQ Development managing partner Barry Adedamola and SC Megaworld Construction and Development Corp. president Engr. Hector S. Sanchez.
Power infrastructure
Under the agreement, the parties will conduct a feasibility study and establish a joint working group to coordinate engineering, construction, permitting and power offtake arrangements.
The proposed development will cover LNG supply, regasification and storage facilities, power generation, substations and related electrical infrastructure.
Taway said reliable electricity supply is essential to attracting investors, particularly businesses requiring continuous operations and substantial power capacity.
"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," Taway said.
He said APECO is also exploring commercial arrangements to strengthen its electricity distribution facilities and address future demand within and beyond the economic zone.
The proposed investment comes as APECO seeks to position its 12,923-hectare economic zone as a destination for data centers, hyperscalers, critical mineral processing facilities and defense-related industries.
These industries require dependable power infrastructure to support operations, making electricity availability a critical consideration in investment decisions.
Phased expansion
The initial $150-million investment is intended to support the project's first phase, while subsequent expansion will depend on feasibility assessments and future energy requirements.
ARQ Development, a Texas-based developer of energy and industrial projects, will contribute international development expertise and access to financing and technical partners.
Adedamola described APECO as a potential gateway for the company's expansion into Asia.
"We see APECO as a strategic gateway for ARQ's expansion into Asia. Its location along the Pacific presents an opportunity to establish a strong foothold in the region," he said.
SC Megaworld, meanwhile, will handle engineering, construction and local permitting, including the development of substations and interconnection facilities linking the proposed power barge to the substation.
Sanchez said the partnership aims to deliver sufficient electricity capacity to support the ecozone's long-term industrial expansion.
"Our shared goal is continuous and uninterrupted power for the zone's locators and investors," he said.
The company, established in 1995, has undertaken power substations and other infrastructure projects across the Philippines.
Investment gateway
APECO expects the proposed LNG facility to strengthen the ecozone's competitiveness by addressing a major infrastructure requirement of prospective investors.
The authority is positioning its Pacific-facing location as an alternative transshipment and industrial hub serving Asia-Pacific and North American markets.
The proposed power project forms part of that strategy, potentially providing the energy infrastructure needed to support industrial locators and future investments.
However, the agreement remains at the feasibility and planning stage, with actual construction and capacity expansion subject to further technical, regulatory and commercial arrangements. —Ed: Corrie S. Narisma
