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The Aurora Pacific Economic Zone and Freeport Authority signed an agreement with US-based ARQ Development Corp. LLC, SC Megaworld Construction and Development Corp., and Philippine firm HML Technologies to explore an LNG-based power generation and substation project in Casiguran, Aurora
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Initial investment commitment at US$150 million, or about P9.45 billion
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The initial phase targets a 50- to 100-megawatt LNG-fired power generation facility and substation microgrid, expanding up to 2,000 in the long term
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The proposed facility will support power requirements of data centers, hyperscalers, defense-related locators and other industries operating in the ecozone
The Aurora Pacific Economic Zone and Freeport Authority (APECO) has signed an agreement with US-based ARQ Development Corp. LLC and Philippine partners SC Megaworld Construction and Development Corp. and HML Technologies to explore an initial US$150-million (P9.45-billion) liquefied natural gas (LNG)-based power generation and substation project in Casiguran, Aurora.
The proposed development will initially provide 50 to 100 megawatts (MW) of generating capacity through an LNG-based power facility and substation microgrid, with plans to expand capacity to 500 MW by the third year and eventually reach 2,000 MW or two gigawatts, according to APECO.
The long-term capacity is intended to meet the electricity requirements of data centers, hyperscalers, defense-related facilities and other industrial locators in the ecozone.
The memorandum of understanding was signed on October 26 at the Philippine Consulate General in Houston, Texas, during APECO’s investment mission to the United States from October 24 to 30, 2026.
READ: APECO on US, Canada roadshow for Aurora ecozone investments
The signing was led by APECO president and CEO Gil Taway IV, ARQ Development managing partner Barry Adedamola, and SC Megaworld Construction and Development Corp. president Engr. Hector Sanchez.
Feasibility study
Under the agreement, the parties will conduct a feasibility study for the project’s phased development and establish a joint working group to coordinate engineering, construction, permitting, and power offtake arrangements.
The proposed investment covers the development of LNG supply, regasification and storage facilities, as well as substation infrastructure and the expansion of the ecozone’s electrical distribution network.
Taway said reliable and dispatchable power is essential to attracting investments, particularly from industries with substantial and continuous electricity requirements.
“Investors look for more than just scalable land when seeking a location; they also look for the presence of reliable power sources, adequate water supply, and digital connectivity that can support their uninterrupted operations. This is why we are developing the ecozone’s critical energy infrastructure,” Taway said.
He said APECO was pursuing commercial arrangements to expand its electricity distribution facilities in anticipation of current and future demand within and outside the economic zone.
READ: APECO puts spotlight on Casiguran as complementary Pacific-facing logistics hub
“As we prime our ecozone for investments from various industries, we continue to do the legwork in securing reliable and clean power sources to ensure the smooth operations of our locators. This will help improve the availability and affordability of power not just in the ecozone but also in the province of Aurora and the country,” the APECO head said.
Adedamola said the partnership would develop energy infrastructure that could accommodate the ecozone’s projected long-term requirements.
“Through our partnership with APECO and SC Megaworld, we aim to develop a project that can grow alongside the ecozone’s long-term energy requirements and contribute to the Philippines’ economic development,” Adedamola said.
“We see APECO as a strategic gateway for ARQ’s expansion into Asia. Its location along the Pacific presents an opportunity to establish a strong foothold in the region and develop energy infrastructure that can support the growing demands of industries across the Asia-Pacific,” he added.
Headquartered in Texas, ARQ develops sustainable energy and industrial projects, drawing on expertise in oil and gas, power generation and renewable energy. The company also has access to financing and technical partners for its proposed investments.
SC Megaworld, ARQ’s Philippine partner, will oversee the project’s engineering, construction and local permitting requirements.
“With SC Megaworld’s experience in power infrastructure development, we look forward to working with ARQ to deliver the 2-gigawatt long-term power capacity for APECO. Our shared goal is continuous and uninterrupted power for the zone’s locators and investors,” Sanchez said.
“This project also presents an opportunity to help establish APECO as a model ecozone for the Philippines, to become the country’s first ecozone powered by LNG-based generation, demonstrating how reliable and cleaner energy infrastructure can drive industrial growth,” he added.
Founded in 1995 as an electrical contractor, SC Megaworld holds a Triple A license from the Philippine Contractors Accreditation Board. Its portfolio includes power substations, bridges, hospitals and manufacturing facilities nationwide.
For the APECO project, the company will undertake the construction of the substation and its associated equipment, including interconnection facilities linking the power barge to the substation.
APECO covers 12,923 hectares in Casiguran, Aurora, and is the country’s only economic zone facing the Pacific Ocean.
The authority is positioning the ecozone as the Philippines’ Gateway to the Pacific, with plans to develop it into an alternative transshipment hub serving major markets in the Asia-Pacific and North America while complementing and helping decongest ports along the country’s western seaboard.
