Three of the top energy companies in the Philippines have partnered to create a large-scale integrated liquefied natural gas (LNG) facility. This partnership, valued at $3.3 billion, marks the first time that Aboitiz Power, a subsidiary of Manila Electric (Meralco), and San Miguel Corp. have collaborated on such a project.

The deal includes investments in two gas-fired power plants: the 1,278-megawatt (MW) Ilijan power plant and a new 1,320-MW facility that is expected to begin operations by the end of the year.

The companies plan to acquire the import and regasification terminal owned by Linseed Field Corp., which will be used to store and process LNG fuel for the two power plants.

“For the first time, three leading power companies are working together to secure our country’s energy needs while transitioning towards cleaner power sources,” SMC President Ramon Ang said in a statement.

Meralco Chairman Manuel Pangilinan described the deal as a “pathbreaking venture,” as the companies hope the facility will bring down power costs and boost the country’s energy security.

The transaction was advised by UBS AG, acting as a financial adviser to Meralco and Aboitiz Power.

The Philippines last year began importing LNG as its only gas field is set to run dry by 2027. The Malampaya field currently supplies power to one-fifth of the country’s main Luzon Island and over one-tenth of the total installed capacity nationwide.