Business World Online
Posted on January 14, 2014 11:20:46 PM
BATANGAS CITY -- Lopez-led First Gen Corp. plans to invest a total of around $2.5 billion to develop liquefied natural gas (LNG) facilities in Batangas City until 2019, top company officials told reporters here yesterday.
“Our vision is to build an additional 1,342 megawatts (MW) between now and 2019 right here where we laid the first spade today,” Federico R. Lopez, First Gen chairman and chief executive officer, said during the groundbreaking ceremony for the first unit of the firm’s San Gabriel natural gas-fired power plant.
Besides the power project, Mr. Lopez said the company also plans to construct its own LNG import terminal.
“This LNG terminal can power all three units of San Gabriel by 2019,” Mr. Lopez added.
INVESTMENT
Speaking to reporters on the sidelines of the same event, First Gen President and Chief Operating Officer Francis Giles B. Puno said the San Gabriel project will be composed of three combined cycle natural gas power plant units, each with a capacity of 414 MW.
“For the first 414-MW unit, that’s around $600 million,” Mr. Puno said.
“That includes the investment for common cooling pipes so that when we expand, the investment should be lower and the construction time should be shorter,” he added.
The official further said that each of the remaining two units will cost about $400 million or a total of $800 million.
First Gen also plans to build a 100-MW modular natural gas peaking power plant -- to be called Avion -- this year.
“We are also in the process of finalizing the necessary permits and approvals to develop a fast-track solution for additional capacity through the development of the 100-MW Avion project,” Mr. Puno said.
He said the Avion project is meant to be a peaking plant that will only operate for a few hours every day.
“Using aeroderivative technology and with its modularized design, we can quickly expand this project to address spikes in electricity demand in the future,” Mr. Puno added.
He noted that this project will cost around $100 million.
“So, that’s $1.5 billion of investments for all of them,” Mr. Puno said.
Besides power generation projects, First Gen will also develop an LNG import terminal within its plant site.
“We are looking at the entry of the LNG terminal in 2018 or 2019,” Mr. Puno said.
“Construction should start some time in 2015. It takes three years to construct it,” he added.
“The LNG tank will have a capacity of 1.5 million tons per annum and can still be expanded. The investment for that is about $1 billion.”
However, he clarified that investments for all the LNG projects will be spread until 2019.
They will be financed through a combination of loan and equity, he added.
“We would have to rely on the banking community,” Mr. Puno said.
“Around 60%-70% for debt and the remaining for equity. So much of them will be financed through loans.”
STRATEGIC
In December last year, the company tapped Germany-based Siemens AG to build and operate the first 414-MW unit of its San Gabriel plant.
It is scheduled to be in commercial operations by March 2016.
The project will be built adjacent to First Gen’s the existing 1,000-MW Sta. Rita and 500-MW San Lorenzo natural gas plants located on a site straddling barangays Santa Rita Aplaya and Santa Rita Karsada.
President Benigno S. C. Aquino III, in his speech during the same event, said First Gen’s San Gabriel power plant will help ensure steady power supply as the country gears for faster growth. The government had set economic growth targets of 6%-7% last year and 6.5%-7.5% this year.
“This plant also bodes well for our country’s continued growth. Our economy hinges on having adequate power. After all, it is growing at a rapid pace and we want to sustain this,” Mr. Aquino said.
The President also said the project signifies that businesses are continually seeing the country as an ideal investment destination.
“Projects such as this, after all, do not merely help bring power into our homes and workplaces; they empower the Filipino people as well,” he said.
“They will help convince investors to bet on the skills of our people; they will help us bring electricity to far-flung barangays, so that families can enjoy the comforts brought about by electricity, and so that children will no longer need to light up candles just to do their homework after the sun goes down,” Mr. Aquino concluded.
First Gen is the holding company for Lopez Group’s power generation businesses. It owns and operates several power plants with a total installed capacity of 2,763 MW.
The company’s net income declined by 29.78% to $176,793 as of end-September last year from $251,774 in the same period in 2012.
Revenues slipped 9.79% to $1.419 million from $1.573 million, while cost of sales dropped 10.83% to $944,335 from $1.059 million.
Its shares closed at P14.98 apiece yesterday, down two centavos or 0.13% from P15 each on Monday. -- Claire-Ann Marie C. Feliciano source
Besides the power project, Mr. Lopez said the company also plans to construct its own LNG import terminal.
“This LNG terminal can power all three units of San Gabriel by 2019,” Mr. Lopez added.
INVESTMENT
Speaking to reporters on the sidelines of the same event, First Gen President and Chief Operating Officer Francis Giles B. Puno said the San Gabriel project will be composed of three combined cycle natural gas power plant units, each with a capacity of 414 MW.
“For the first 414-MW unit, that’s around $600 million,” Mr. Puno said.
“That includes the investment for common cooling pipes so that when we expand, the investment should be lower and the construction time should be shorter,” he added.
The official further said that each of the remaining two units will cost about $400 million or a total of $800 million.
First Gen also plans to build a 100-MW modular natural gas peaking power plant -- to be called Avion -- this year.
“We are also in the process of finalizing the necessary permits and approvals to develop a fast-track solution for additional capacity through the development of the 100-MW Avion project,” Mr. Puno said.
He said the Avion project is meant to be a peaking plant that will only operate for a few hours every day.
“Using aeroderivative technology and with its modularized design, we can quickly expand this project to address spikes in electricity demand in the future,” Mr. Puno added.
He noted that this project will cost around $100 million.
“So, that’s $1.5 billion of investments for all of them,” Mr. Puno said.
Besides power generation projects, First Gen will also develop an LNG import terminal within its plant site.
“We are looking at the entry of the LNG terminal in 2018 or 2019,” Mr. Puno said.
“Construction should start some time in 2015. It takes three years to construct it,” he added.
“The LNG tank will have a capacity of 1.5 million tons per annum and can still be expanded. The investment for that is about $1 billion.”
However, he clarified that investments for all the LNG projects will be spread until 2019.
They will be financed through a combination of loan and equity, he added.
“We would have to rely on the banking community,” Mr. Puno said.
“Around 60%-70% for debt and the remaining for equity. So much of them will be financed through loans.”
STRATEGIC
In December last year, the company tapped Germany-based Siemens AG to build and operate the first 414-MW unit of its San Gabriel plant.
It is scheduled to be in commercial operations by March 2016.
The project will be built adjacent to First Gen’s the existing 1,000-MW Sta. Rita and 500-MW San Lorenzo natural gas plants located on a site straddling barangays Santa Rita Aplaya and Santa Rita Karsada.
President Benigno S. C. Aquino III, in his speech during the same event, said First Gen’s San Gabriel power plant will help ensure steady power supply as the country gears for faster growth. The government had set economic growth targets of 6%-7% last year and 6.5%-7.5% this year.
“This plant also bodes well for our country’s continued growth. Our economy hinges on having adequate power. After all, it is growing at a rapid pace and we want to sustain this,” Mr. Aquino said.
The President also said the project signifies that businesses are continually seeing the country as an ideal investment destination.
“Projects such as this, after all, do not merely help bring power into our homes and workplaces; they empower the Filipino people as well,” he said.
“They will help convince investors to bet on the skills of our people; they will help us bring electricity to far-flung barangays, so that families can enjoy the comforts brought about by electricity, and so that children will no longer need to light up candles just to do their homework after the sun goes down,” Mr. Aquino concluded.
First Gen is the holding company for Lopez Group’s power generation businesses. It owns and operates several power plants with a total installed capacity of 2,763 MW.
The company’s net income declined by 29.78% to $176,793 as of end-September last year from $251,774 in the same period in 2012.
Revenues slipped 9.79% to $1.419 million from $1.573 million, while cost of sales dropped 10.83% to $944,335 from $1.059 million.
Its shares closed at P14.98 apiece yesterday, down two centavos or 0.13% from P15 each on Monday. -- Claire-Ann Marie C. Feliciano source
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