Public pressure has prevailed in halting a P41.5 billion project which is part of Asian powerhouse San Miguel Corp.'s foray into imported liquefied natural gas.

SMC Global Power Holdings Corp. unit Prestige Power Resources Inc. canceled its application for an environmental compliance certificate for a proposed 600-megawatt LNG combined cycle power project in Barangay Tugas, Tabango, Leyte.

The project is a cornerstone of SMC's shift from coal plants which nonetheless is being criticized by ecology groups as merely jumping from one fossil fuel to another.

With the Malampaya natural gas field fast depleting, LNG has emerged as a key alternative.

SMC Global Power has pending petitions with the Energy Regulatory Commission for rate adjustments which the company warned will have to be granted or it pulls out from the PSAs with Meralco.

The PSAs involved in the ERC pleas are the Ilijan natural gas plant operated by South Premiere Power Corp. and the Sual coal plant of San Miguel Energy Corp.

It appears that pressure from civic groups and Filipino consumers remains a potent tool against the muscle flexing of big business.

SMC likely to appeal

"While we must remain wary of a regrouping of SMC and a move to re-file the ECC application in the future, the story of the Tabango project shows how ordinary people, when working in concert, can move against the biggest of companies," consumer group Power for People Coalition said.

"San Miguel's proposed projects amount to 12.3 gigawatts in the form of eight proposed gas-fired power plants in addition to the 1.8-gigawatt plant already under construction. We hope the Tabango experience will convince the company to shift to renewable energy and to stop forcing expensive and environmentally destructive energy on Filipino consumers," P4P Convenor Gerry Arances said.

The Philippine Movement for Climate Justice called the retreat of the SMC project "a victory for the people and the planet."