First Gen sets $900-M capex for greenfield power projects

by Myrna Velasco, 08 March 2015
from Manila Bulletin

First Gen Corporation of the Lopez conglomerate will be injecting fresh capital expenditures of $900 million this year for its greenfield power projects in Batangas.

According to First Gen president Francis Giles Puno, the company will have capital outlay for both its 100-megawatt aero-derivate Avion power project as well as for the full blast implementation of its 414-megawatt San Gabriel gas-fired plant.

“There’s more focus on Avion which is $130 million; and San Gabriel is $600-$700 million…so it’s about $800-$900 million of capex,” he expounded.

The Avion plant, Puno said, may be completed around May this year and could be on full commercial commissioning by June.

For the San Gabriel plant, the completion is still targeted by March next year – somehow one month advance to their committed timeline to President Aquino when the facility broke ground at its Batangas project site last year.

The next in line for the power generation arm of the Lopez group will be its Santa Maria plant of another 414MW capacity; while the third unit would have to be decided yet by the company.

“San Gabriel is by March next year, and the Santa Maria plant which is another unit, probably by second half of 2017 or early 2018,” Puno said.

 For the third phase of its greenfield gas-fed power plant development, the crucial component lumped to it will be the planned $1.0 billion LNG terminal.

It will be designed as an onshore LNG handling facility which will be developed alongside the company’s third ‘saint power plant’ – a project that will then complete First Gen’s blueprinted power capacity addition of more than 1,200MW.

Even at this stage, the Lopez group is the single biggest investor in the genre of gas-fired power facilities. It currently has 1,500MW capacity from its Santa Rita and San Lorenzo gas plants.