CFP Engaged by Global Investment Fund to Develop Gas-to-Power (G2P) Projects in the Philippines

CFP, in partnership with Wisenergy, has been engaged by a U.S. portfolio company supported by one of the world’s largest investment and alternative asset management firms specializing in private equity energy infrastructure. The mandate of CFP and Wisenergy was to identify attractive G2P investment opportunities for the fund to develop, invest in, and build. The portfolio company was particularly interested in integrated G2P projects that involved the provision of LNG storage and regasification facilities and large-scale combined cycle generation projects that were replicable and most suited for an island economy like the Philippines. CFP and Wisenergy conducted preliminary due diligence on possible LNG and power generation projects and supported pre-development activities including strategic business planning and revenue modeling. CFP and Wisenergy also relied on their extensive power industry network to discuss with and do market sounding with key off-takers and potential industrial customers. The development of G2P projects using imported LNG would become more critical to the country’s energy security after the Malampaya natural gas field in northwest Palawan starts to deplete by the mid- to late 2020s. It is a vital cog as well to the country’s aspiration to shift its energy development strategy that is low carbon and less dependent on imported oil to sustainable electricity via renewables. As the main domestic source of natural gas, Malampaya delivers piped gas that fuels five combined cycle power plants in Batangas Bay. These power plants provide half of the electricity supply for Luzon, the Philippines’ most populous island.