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News Release2016

Jul. 07, 2016

JGC Awarded the Contract for a Power Plant Construction Project in the Philippines

Full-scale expansion into the energy infrastructure field under the new medium-term management plan

Yokohama-Japan- JGC Corporation announced today that, with JGC Philippines Inc., its subsidiary in the Philippines, it has been awarded a lump-sum turnkey basis contract for the Phase II construction work for a Coal-Fired Power Plant Construction Project planned in the Sarangani Province, Mindanao, Philippines, by Sarangani Energy Corporation (Capital subscribers:Alsons Consolidated Resources, Inc. 75%, Toyota Tsusho Corporation 25%).    

The contract covers the engineering, procurement, construction and commissioning (EPCC) services for the Phase II construction work (105 MW x 1 train) for a coal-fired power plant with a capacity of 210 MW (105 MW x 2 trains).  The project is scheduled for completion in April, 2019.  

The plant is located in the province of Sarangani, about 1,100 km south of Manila, and the electric power generated is intended to serve the needs of the province, including its major city of General Santos, thereby increasing the potential for industrial growth in the province and contributing to an improved standard of living for the population.  With a growing population and steady economic growth, the Philippines is facing an increasing demand for electric power, and this situation is of particular concern on the island of Mindanao, where the shortage of power has been especially severe. 

Minimizing the environmental impact of this project is also a high priority.  This has been addressed by the use of a circulating fluidized bed boiler that makes possible two stage combustion at low temperatures, which inhibits the generation of atmospheric pollutants, such as Nitrogen Oxide (NOx) and Sulfur Oxide (SOx).  This, combined with removal of the particulates contained in the off-gas, ensures that the effects of the operation of this plant on the environment are kept to a minimum. 

JGC Philippines was established in 1989 and initially undertook detailed design work for JGC projects, but in recent years, it has applied its expertise gained through that experience to carry out EPC work independently for domestic projects within the Philippines.  In this project, the combination of JGC Philippines’ knowledge of local conditions and JGC’s project management skills not only will lead to the successful completion of this project but will also open the door to further expansion of the JGC Group’s activities in other areas, as well. 

JGC’s new medium-term management plan, “Beyond the Horizon,” announced in May of this year, directly targets JGC’s basic goal of expanding its business beyond projects in the oil and gas sector to other energy infrastructure, industrial infrastructure and social infrastructure projects.  Under that plan, with this project, JGC is taking a large step into the field of power generation, and further, JGC anticipates that this project will contribute to the growth expected in the ASEAN region. 

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