MANILA — A Brown Company Inc., a diversified holding firm, has suspended pre-development activities for its 900-megawatt liquefied natural gas (LNG) project in Batangas, citing ongoing challenges in securing gas supply and grid connection capacity.
The project, being developed through A Brown subsidiary Vires Energy Corp., had aimed to strengthen Luzon’s energy mix but faced uncertainties in off-take arrangements and connection to the transmission grid. The board decided to halt the initiative and reallocate resources to more profitable core operations.
“As part of our strategic portfolio review, we are focusing on ventures with clearer market viability,” the company said, noting that the decision aligns with efforts to optimize operational efficiency and financial positioning.
A Brown also recorded a one-time, non-cash impairment provision covering the Batangas LNG project, the non-moving East West Rail Project, and equipment for palm oil operations in Bukidnon, representing less than 5 percent of its total assets. Management emphasized that these adjustments will not affect the company’s cash flow or liquidity.
While milling and refining activities in Bukidnon are suspended, palm oil production continues at the Surigao del Sur facility, highlighting the group’s focus on profitable business lines. In addition, the board approved the conversion of P135.5 million in deposits for future stock subscriptions in Vires Energy and P450 million in A Brown Energy & Resources Development Inc. into equity.
The company stressed that the suspension does not foreclose future recovery, leaving room for potential redevelopment or sale if market conditions improve.
The Batangas LNG project would have supplied power to meet rising energy demand in Luzon, reinforcing the province’s strategic role in the country’s energy landscape. A Brown’s move underscores the challenges of developing large-scale fossil-fuel projects amid supply constraints and a shifting market preference toward more sustainable energy solutions.
A Brown also maintains a portfolio in real estate development across Cagayan de Oro, Misamis Oriental, Rizal, Bukidnon, and Agusan del Norte, while holding a 99.995 percent stake in Vires Energy acquired from Singapore-based Argo Group Pte. Ltd.|
