The Department of Agrarian Reform has stated clearly that the liquefied natural gas project of San Miguel Corporation-owned Excellent Energy Resources Inc. and the LNG terminal complex of its partner Atlantic Gulf and Pacific Company with Linseed Field Corporation are illegal.
The vast project which will cost more than $1 billion stands on a lot that the DAR ruled has not complied with land conversion processes yet SMC had started in earnest in bringing in earth-moving machines to the site.
In Barangays Ilijan and De la Paz, SMC seeks to put up a new 1.75 gigawatt LNG power plant and an import terminal on properties that were the subject of illegal or premature conversion.
Based on the project timeline, the terminal is expected to be completed first for use as onshore regasification, storage, and utilities, the capacity of which is expected to be augmented by a floating storage unit.
Last 26 May, Ilijan Primeline Industrial Estate Corp applied for the conversion of 40 parcels of land totaling 19.3526 hectares in Barangay Ilijan, Batangas City, Batangas.
A certification from the Office of Batangas Governor Hermilando Mandanas dated 18 February 2022 classified it as a priority energy project.
SMC’s affiliate in the Batangas project showed aversion to inspection.
Government representatives visited the area but members of the opposition group said complainants were not allowed to enter the site.
SMC justified its stonewalling with its insistence that it had already complied with DAR requirements “as alleged by the Linseed Field Power Corporation.”
Linseed executives said the reclassification of the properties from agricultural to industrial by the Batangas City Planning Development Office and the issuance of the certification of exemption by the DAR was sufficient proof of compliance with the requirements for the development of the landholdings.
No farmers or occupants were seen in the subject landholdings, SMC-EERI said in justifying the conversion thus, thwarting the opposition’s proposal for the issuance of a cease-and-desist order due to illegal or premature conversion.
Protest groups battling for the preservation of the natural wonders of Batangas said actual work on the project started way ahead of the application for conversion on 26 May 2022.
It was apparent that the project proponents’ efforts to comply with the DAR rules was an afterthought.
The illegal conversion was indeed undertaken 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 ruling to issue a cease and desist order.
The groups are calling for a revocation of the permits awarded to the project including the environmental compliance certificate.
“We are appalled that these companies dare to strip bare entire portions of land and destroy nearshore marine life without even securing necessary clearance. This would have gone on if not for the vigilance of local stakeholders. Now that it finally recognizes that illegal activities are going on, DAR must take action and hold SMC-EERI and AG&P-Linseed accountable,” said Gerry Arances, Executive Director of the Center for Energy, Ecology, and Development.
Despite DAR’s rejection of the project, the penalties imposed were too lenient and the project even obtained a priority classification.
“We hope the DAR will not fail in its primary responsibility to legally charge SMC-EERI and AG&P-Linseed for this land conversion violation,” Arances added.
Energy projects are indeed vital but the welfare of communities should come first as the bigger picture is that SMC is banking on the LNG projects to redeem profits as it is pressured to veer away from the use of coal to fuel power generation while paying lip service to renewable energy.
The violation of DAR rules is a blatant show of the company’s insincerity in its ecological commitments.