Published March 13, 2018, 10:00 PM By Myrna M.
Velasco
At an all-in tariff of P3.77 per
kilowatt hour (kWh), the 414-megawatt San Gabriel gas-fired power facility of
First Gen Corporation of the Lopez Group will be ready to supply power to
Manila Electric Company (Meralco) upon the approval of their contract by the
Energy Regulatory Commission (ERC).
The Lopez firm, via subsidiary First
NatGas Power Corporation has inked a six-year power supply agreement (PSA) with
Meralco covering the capacity of its San Gabriel plant.
“The term of the PSA is six years
using gas from the Malampaya field,” First Gen has noted – the timeframe when
gas production at the country’s only commercial gas field would also wane.
The duration of the power supply
deal, it was emphasized, shall be from the ERC approval and set to fall due on
February 23, 2024 “unless otherwise extended by the parties.”
First Gen has qualified though that
once liquefied natural gas (LNG) becomes available, “the term of the PSA could
be extended upon the mutual agreement with Meralco.”
The Lopez firm emphasized that with
this PSA, “Meralco secures competitively priced baseload electricity, since
Gabriel’s all-in tariff at an 80-percent capacity factor is at P3.77 per kWh.”
First Gen vouched that Meralco would
be able to draw several advantages on its off-take arrangement for the San
Gabriel plant.
It indicated that beyond the gas
facility’s ability to provide competitively priced baseload power, the asset
also offers “an immediate source of replacement power during outages of other
baseload plants.”
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