First Gen unit seals 414-MW supply contract with Meralco

By Lenie Lectura – March 12, 2018
from Business Mirror

San Gabriel natural gas plant in Batangas
FIRST NatGas Power Corp., a wholly owned subsidiary of First Gen Corp. (First Gen), will supply 414 megawatts (MW) of power capacity for P3.77 per kilowatt-hour (kWh) to the Manila Electric Co. (Meralco).

Under the newly signed power-supply agreement (PSA) between the two companies, power will be sourced from the Lopez-led firms 414-MW San Gabriel combined cycle natural gas-fired power plant, which is within the First Gen Clean Energy Complex in Batangas City.The term of the PSA is six years using gas from the Malampaya field but, in the event that liquefied natural gas becomes available, the term of the PSA could be extended upon mutual agreement with Meralco.

With this PSA, Meralco secures competitively priced baseload electricity, since San Gabriel’s All-In Tariff at an 80-percent capacity Factor is P3.77 per kWh.

The San Gabriel PSA offers a number of benefits that will enhance the quality of Meralco’s power-generation portfolio by providing: (i) competitive dependable baseload capacity; (ii) an immediate source of replacement power during outages of other baseload plants; and (iii) the option for mid-merit supply matched with Meralco’s ramping requirement since San Gabriel has the ability to rapidly ramp up and down upon notice.

Under the terms of the PSA, power from San Gabriel is actually available for purchase by Meralco immediately. However, the sale of electricity to Meralco will only commence upon its approval by the Energy Regulatory Commission.

The PSA is set to expire on February 23, 2024, unless otherwise extended by the parties.

Earlier, Solar Philippines Inc. challenged the price offer of First NatGas to supply Meralco with 24/7 power at P2.99 per kWh.