Communities urge Ayala Corp to withdraw from fossil gas project in Batangas City
- Media Communications
- Oct 6
- 2 min read
Quezon City, Philippines — Communities from Barangays Pinamucan, Libjo, and Malitam in Batangas City, together with the Philippine Movement for Climate Justice (PMCJ), sent a letter to Ayala Corporation (Ayala Corp) on Oct. 6, 2025, calling on the latter to support just energy transition to renewables instead of fossil fuels.
Ayala Corp AC Energy (ACEN)'s Ace Enexor (ENEX) owns 50 percent of the Batangas Clean Energy (BCE) Project, which includes a liquefied natural gas (LNG) terminal and a combined cycle gas turbine power plant. PMCJ has long been arguing that fossil gas is never clean as it releases harmful pollutants that can contribute to smog, acid rain, respiratory problems, and cardiovascular diseases.
“A peer-reviewed study published in 2024 found that LNG has 33 percent higher greenhouse gas emissions than coal. The actual burning of gas accounts for only about a third of the total emissions. Gas is still a fossil fuel and therefore not a cleaner alternative to coal,” said Larry Pascua, PMCJ senior energy officer.
In 2023, the five barangays in Batangas City requested an investigation into the health impacts of five operating fossil gas plants in Barangays Dela Paz, Ilijan, Malitam, Sta. Rita Karsada, Tabangao Ambulong, and Tabango Aplaya. Communities living near the dirty projects experience skin and cardiovascular diseases.
"The fight against the BCE Project is a fight for our children and the future generation of Batanguenos. We have visited various offices, pleading with them to stop making our province an LNG hub. In 2022, ACEN announced its full divestment of the South Luzon Thermal Energy Corporation (SLTEC) coal-fired power plant. We are calling on Ayala Corp: If you are serious about your renewable energy push, withdraw from the BCE Project!" said Agnes Ilagan, PMCJ Batangas province lead on climate and energy transition.
Elle Bartolome, PMCJ senior executive officer for policy, campaigns, and communications, stressed that Ayala’s 2020 Environmental and Social (E&S) policy aims to achieve a low-carbon portfolio by 2030 through increased investment in renewable energy and divestment from coal assets. This enabled them to outline their net-zero roadmap, but its concrete realization would mean a total exit from the fossil fuels playing field.
"The world is all eyes on Ayala since it took the world’s first market-based Energy Transition Mechanism (ETM) in 2022. A total success for this bold ambition would be for Ayala to take a decisive step to divest its share in BCE and channel all these resources into renewable energy projects. Doing so would not only accelerate the transition to 100% renewables but also reduce Ayala's exposure to the increasing health, regulatory, financial, and reputational risks associated with fossil fuel investments. This is a critical moment for them to demonstrate strong leadership toward a sustainable, resilient, and democratic energy future in the Philippines," Bartolome said. ###
FOR INQUIRIES:
Sheila Abarra
Senior Media and Communications Officer
Philippine Movement for Climate Justice
Viber: +639916692356
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