Energy World Corporation Ltd has outlined a strategic reset including a $442 million debt-to-equity conversion and is progressing towards commissioning its flagship Pagbilao LNG and power project in the Philippines, alongside advancing its Sengkang LNG facility in Indonesia.
- Strategic governance overhaul with new board and executive leadership
- Capital structure reset via $442 million debt-to-equity conversion
- Pagbilao LNG Hub and 650 MW power plant nearing operational commissioning
- Sengkang LNG facility substantially complete, progressing off-take negotiations
- Divestment of non-core Australian assets underway to focus on Asian growth
Strategic Reset and Governance Overhaul
Energy World Corporation Ltd (ASX – EWC) has unveiled a comprehensive strategic reset at its November 2025 Annual General Meeting, signaling a new chapter for the company as it sharpens its focus on Asia’s burgeoning LNG and power markets. Central to this reset is a governance overhaul, including the appointment of a majority non-executive board and new CEO Edward McCartin alongside CFO Joseph Meyer, both bringing deep regional and sector expertise.
The company is actively winding down related party activities and divesting non-core Australian assets, aiming to build stakeholder trust and streamline operations around its core growth assets in the Philippines and Indonesia.
Capital Structure Reset and Financial Position
Energy World is undertaking a significant capital restructure through a proposed $442 million debt-to-equity conversion, designed to de-leverage the balance sheet and enhance financial flexibility. This move is expected to improve the company’s net asset value per share substantially, with pro forma NAV estimated at A$0.29 compared to a current share price near A$0.02, highlighting a material undervaluation in the market.
The company has engaged a US investment bank to lead a capital raise, underpinning the funding requirements for its flagship projects and supporting a disciplined execution approach.
Pagbilao LNG Hub and Power Project – Nearing Commissioning
The Pagbilao project in the Philippines stands as Energy World’s cornerstone asset, featuring a 650 MW combined cycle gas turbine (CCGT) power plant adjacent to a 3 million tonnes per annum LNG import terminal. Independent technical due diligence by Black & Veatch and Sproule confirms the project’s readiness with no major red flags, validating the asset’s integrity and operational potential.
With approximately 80% of construction complete, key milestones include the installation of Siemens gas turbines, a 14-kilometre 230 kV transmission line connecting to the national grid, and a licensed private port capable of handling conventional LNG carriers. The project aligns closely with the Philippines’ national energy policy, supporting the country’s transition towards cleaner, flexible gas-fired power generation amid rising demand.
Sengkang LNG Facility – Progress and Challenges
In Indonesia, the Sengkang LNG facility is substantially complete, designed as a modular 2 mtpa liquefaction plant with a tolling business model. The company is advancing negotiations for gas supply and off-take agreements with EEES and state-run distributors, critical steps to unlocking the project’s commercial potential.
While technical due diligence confirms asset readiness, certain operational prerequisites remain, including reactivation of intellectual property licenses and jetty dredging. The company anticipates a capital expenditure range of US$125–140 million to complete the first 1 mtpa train, with potential cost reductions depending on gas supplier contributions.
Market Positioning and Growth Outlook
Energy World is strategically positioned to capture the accelerating demand for LNG and gas-fired power in Southeast Asia, particularly in the Philippines where power demand growth exceeds 5% annually. The company’s integrated LNG and power infrastructure offers multiple revenue streams, including power sales via the Wholesale Electricity Spot Market, LNG trading, storage services, and tolling fees.
With scalable infrastructure supporting up to 3,000 MW of power generation and rare large-scale LNG storage capacity, Energy World aims to leverage regional market dynamics, including government support for energy transition and the growing need for flexible baseload power.
The refreshed leadership team and independent governance structure provide a solid foundation for disciplined execution and capital raising, critical to realising the company’s growth ambitions in a complex and evolving energy landscape.
Bottom Line?
Energy World’s strategic reset and near-term project milestones set the stage for a pivotal growth phase, but execution risks and market conditions will be key to watch.
Questions in the middle?
- When will definitive gas supply and off-take agreements for the Sengkang LNG facility be finalised?
- How will the capital raise progress amid current market conditions and what impact will it have on valuation?
- What are the timelines and contingencies for the final commissioning and commercial operation of the Pagbilao power plant?