Gas pain
Proponents applied for conversion on 26 May 2022, but an inspection by the agency showed the development started even before the application was approved.
Daily TribuneProponents applied for conversion on 26 May 2022, but an inspection by the agency showed the development started even before the application was approved.
Environmental concern groups have succeeded in obtaining an injunction from the Department of Agrarian Reform against a costly integrated liquefied natural gas project that is expected to worsen the outlook for the debt-burdened San Miguel Corp. energy unit SMC Global Power.
Complaints were also filed against SMC subsidiary Excellent Energy Resources, Inc. and Linseed Field Corp, a local subsidiary of global builder Atlantic Gulf and Pacific Company, before the Environmental Management Bureau of the Department of Environment and Natural Resources over the companies' violation of environmental laws.
The project involved the setting up of SMC's new LNG-fueled power plant along with an import terminal of AG&P that SMC Global Power is relying on to supply the Ilijan gas plant.
Last June, Ilijan plant owner South Premiere Power Corp., a subsidiary of SMC Global Power, ended a supply deal with the Malampaya natural gas consortium.
It leaves the plant in Batangas without a source of energy despite being committed to supplying power to Meralco under a straight-price power supply agreement.
SMC Global Power is relying on tapping banked gas from Malampaya that it acquired for $1.2 billion, and the LNG project going on stream to feed the requirements of Ilijan.
The LNG project was initially scheduled to start commercial operations last June.
DAR, however, ordered the project halted after the proponents skipped acquiring land conversion permits on landholdings in Barangays Ilijan and Dela Paz.
The Bukluran ng Mangingisda ng Batangas and the Center for Energy, Ecology, and Development sought and obtained a cease-and-desist order from DAR against the project.
Proponents applied for conversion on 26 May 2022, but an inspection by the agency showed the development started even before the application was approved.
"It is apparent that illegal conversion is indeed being undertaken currently in the subject landholdings, thus, there is an urgent need to stop the developments in the area, or else the construction will continue to the detriment of the complainants being affected in the area," the DAR said in its order.
Ecology organizations have also raised concerns over the gas project that is close to a biodiversity region known as the Verde Island Passage, which is the source of livelihood of Batangas' fisherfolk.
AG&P-Linseed is building a liquefied natural gas import terminal facility in Batangas City, while SMC-EERI is constructing a 1.75 gigawatt LNG power plant in the same vicinity. Both projects threaten the biodiversity of the Verde Island Passage.
Another complaint before the DENR cited other violations such as the proponents' failure to secure coconut tree-cutting permits from the Philippine Coconut Authority and DENR.
The groups said the violations warrant the cancelation of the project's environmental compliance certificate.
SMC appeared to have acquired a penchant for muscling its way through and disregarding rules in its business dealings.
