Business World Online
Posted on September 24, 2015 09:09:00 PM
By Claire-Ann M. C. Feliciano, Senior Reporter
DESPITE delays, First Gen Corp. is committed to bringing in two new natural gas projects to help boost Luzon’s power supply by next year.
Francis Giles B. Puno, First Gen president and chief operating officer, said on Wednesday that construction activities for the 414-megawatt (MW) San Gabriel plant and 97-MW Avion plant are currently in full swing.
“Avion and San Gabriel are progressing,” Mr. Puno told reporters on the sidelines of PowerTrends 2015 in Pasay City.
The official, however, recognized that both projects will not meet the original targets for commercial operations.
“Avion is a little late. It will come online by the end of the year,” Mr. Puno said. “San Gabriel, second quarter of next year.”
The Avion plant was originally intended to provide additional capacity for this year’s dry months.
On the other hand, the San Gabriel plant was initially expected to be ready before the summer of 2016.
Mr. Puno said there had been delays in site preparation but he assured that these plants will start contributing next year.
Capacities of these plants will be initially sold to the Wholesale Electricity Spot Market -- where power distributors can source supply when the need arises.
First Gen allotted up to $750 million to develop these projects.
Mr. Puno said the Avion plant costs about $100-150 million, while the San Gabriel plant is worth between $550-600 million.
First Gen recently signed a $200-million, 10-year loan agreement with BDO Unibank, Inc. and BDO Capital & Investment Corp. to fund the projects of its subsidiaries.
Mr. Puno said part of the funding will be used for the Avion and San Gabriel plants.
Incorporated in 1998, First Gen is the holding firm for the power generation businesses of the Lopez Group.
The company has 2,957-MW projects in its portfolio -- most of which utilizes natural gas resources.
First Gen -- through its subsidiaries -- currently owns and operates the 1,000-MW Santa Rita and 500-MW San Lorenzo natural gas plants in Batangas.
Besides natural gas projects, First Gen is also planning to build a number of run-of-river hydropower projects in Mindanao.
Among the prospective projects are the 20-MW Tagoloan and 23-MW Bubunawan in Bukidnon province; as well as the 30-MW Puyo in Agusan del Norte. source
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