SAN Miguel Corporation's (SMC) power unit, SMC Global Power Holdings Corp., now fully owns and operates the 1,200-megawatt (MW) net Sual coal-fired thermal power plant, its erstwhile independent power producer (IPP) partner, TeaM Energy Corp. (TeaM Energy), said on Sunday.

This comes following the expiry of a cooperation period under Team Energy's IPP contract, originally dated May 20, 1994.

TeaM Energy said that it recently completed the turnover of the coal-fired power plant to the government through the Power Sector Assets and Liabilities Management Corp. (Psalm), which ended the cooperation period.

The plant was initially built under a build-operate-transfer scheme with the national government which at the time was represented by National Power Corp. (NPC).

TeaM Energy said there was close coordination with the NPC, Psalm, and Sual Power Inc. (SPI), a business unit of SMC Global Power Holdings, over the past year to ensure a seamless transition process.

"We have completed last October 25, 2024 the turnover of the Sual power station to NPC and Psalm," TeaM Energy Officer in Charge Mitsuhiro Kojima said.

The company added that the plant was in "excellent" condition prior to the turnover.

TeaM Energy explained that on the day of the transfer of the Sual power plant to NPC and Psalm, the latter in turn transferred ownership of the power facility to SPI.

SPI, Team Energy said, is the IPP administrator of the Sual power plant, pursuant to the IPPA administration agreement between SPI and Psalm. That agreement ended on the day of Team Energy's transfer of the plant to Psalm, thereby giving SPI the right to full ownership of the plant.

"For more than 25 years, the Sual power station has contributed to the development of the Philippines by generating reliable, cost-effective energy that has energized homes, factories, offices, schools and hospitals," Kojima said.

"The TeaM Energy organization is especially proud to have done its share in helping the Philippines recover from the Covid-19 pandemic despite the challenges and obstacles we faced in running the plant during those days," he added.

Located in the municipality of Sual in Pangasinan, the coal-fired facility consists of two 600-MW net generating units, and is one of the largest power plants in the country.

"We are thankful to our stakeholders including the national government, other agencies, and our host communities for enabling the Sual plant's success," Kojima said.

"Our deep appreciation [goes] as well to our IPPA [partner], SPI of the San Miguel Group, and we will be leaving the plant in the hands of a capable, highly respected organization. It has been a great pleasure working with them."

Moving forward, TeaM Energy said it would continue to operate the 735-MW Pagbilao power station in Quezon province as it also holds a 50-percent stake in the 420-MW Pagbilao Unit 3 power project.

SMC shares on Friday closed at P87.5 each, up P0.25 or 0.9 percent.