First Gas Power Corporation

First Gas Power Corporation

jetty

The jetty
at the
FGHC-FGPC
CCGT
Power Plant
in Sta. Rita,
Batangas

First Gas Power Corporation (FGHC-FGPC)

FGPC, a subsidiary of First Gas Holding Corporation (FGHC), a joint venture between BG, First Philippines Holdings (FPHC) and the Meralco Pension Fund, signed a power purchase agreement in March 1995 with the Manila Electric Company (Meralco) for 1,500 MW of combined-cycle power plants.

The FIRST project, established in 1994, is to build, own and operate the first gas-fired combined cycle gas turbine power plant in the country with a design capcity of 1,000 MW. The plant is being built on a 35-hectare site in Santa Rita, Batangas City along Batangas Bay.

The SECOND project is the San Lorenzo Project which will produce the remaining 500 MW. Commercial operation is scheduled for the first quarter of 2002. The project is estimated to cost approximately $450 million.

FGHC-FGPC’s THIRD project relates to the gas pipeline business with the first phase being a seven-kilometer pipeline from the Shell refinery in Tabangao, Batangas City to the Sta. Rita site.

Construction of the first power plant comprising 1 000 MW, located at Santa Rita, Batangas in Luzon, commenced in July 1997. Siemens have been appointed as the main contractor for engineering, procurement and construction, and will operate and maintain the plant. A limited recourse financing arrangement for $680 million was finalised in September 1997.

<see project structure>

First power is expected to be produced in year-end of 1999. The plant will initially be operated on condensate prior to conversion to natural gas in 2001/2 when gas from the Shell Camago-Malampaya field is expected to become available.

Gas and condensate purchase agreements were signed in 1997. Gas sales and purchase agreements for the planned second stage of the project, which will take the total capacity to 1,500 MW, have now been concluded.

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First Gas Power
Corporation

HE-series steam turbine

An HE-series
steam turbine
with a
single-flow
high-pressure
cylinder and a
single-flow
combined
intermediate-
and low-pressure
cylinder with
axial steam
exhaust and
integrated
rotor bearing
(Siemens).

aerial

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Sta. Rita Project

FGPC, the first ever gas-fired combined cycle gas turbine power plant in the country, is nearing completion. Commissioning is expected to begin before the end of 1999, while commercial operation of the first block is expected to commence by the first quarter of the year 2000.

The $890 million power project obtained a limited recourse project financing with favorable terms way back in September 1997–a remarkable feat considering the burgeoning financial crisis in the Asian region at the time. The project is backed up by a Power Purchase Agreement with Meralco, the largest electric utility in the country.

<1> Power Plant
<2> Switchyard
<3> Tank farm
<4> Jetty
<5> Transmission line

Construction began shortly after financial close, in November 1997, and was spearheaded by a consortium of Siemens AG (Germany) and Siemens Power Generation Asia Pacific Sdn. Bhd. (Malaysia). Siemens Power Operations Inc., which has a six-year operations and maintenance agreement with FGPC, has been mobilized and will take over the operations and maintenance of the plant soon after the construction, commissioning and testing of the plant has been completed.

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Power Rates

Apart from being environment friendly, the 1,000 MW Sta. Rita facility currently boasts of having the lowest rates among the Meralco IPPs. The Sta. Rita tariff is 30% less than the current grid price of Napocor, which is Meralco’s main power supplier to date.)

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Community
Development Programs

In line with its commitment to support the surrounding communities, Sta. Rita has embarked in numerous community development programs.

In the midst of full-scale construction activities, Sta. Rita has already engaged in more than 20 medical and dental missions, constructed and rehabilitated several community structures, and donated essential equipment to the community. These missions demonstrates First Gas’ commitment to being a socially responsible corporation.

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First Gas Power
Corporation

San Lorenzo Project

FGP Corp. is currently gearing up for financial close. It brings back together the same team that made the successful financing of the Sta. Rita Project. It has already signed a Power Purchase Agreement with Meralco, an Engineering Procurement and Construction contract with Siemens AG (Germany), an Operations & Maintenance contract with Siemens Power Operations, Inc., and a Gas Sale and Purchase Agreement with Shell Exploration B.V.

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The San Lorenzo 500 MW Combined Cycle facility is located adjacent to Sta. Rita Project. The project’s strategic location allows it to share common facilities such as the tank farm and fuel jetty, thus reducing the need to duplicate various operational facilities. Cost reductions via pooling of operations and maintenance and other expenses can also be achieved. As such the San Lorenzo Project is able to duplicate Sta. Rita’s competitive tariff to Meralco, despite being smaller in scale.
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Project Costs

The project cost is estimated at $500 million, inclusive of capital costs, working capital requirements, related pipeline financing, insurance and development costs. The financing is based on a 75% debt and 25% equity structure. FGP Corp. is hoping to tap the same set of lenders to that of FGPC. Financial close is expected to be completed by the end of 1999.

Online by 2002

San Lorenzo, similar to the Sta. Rita project, will use Siemen’s 84.3a Combined Cycle gas turbine technology, one of the most efficient available in the world today. The plant consists of one block having a capacity of 500MW, targeted for completion and commercial operation by the first quarter of 2002. The plant will, likewise, initially operate on liquid fuel, but will shortly convert to natural gas from the Malampaya Gas Fields.

SIEMENS Single-shaft gas and steam turbine-generator arrangement. The Model V84.3A gas turbine stands on the same level as the HE series steam turbine and the generator.

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First Gas Power
Corporation

Sta. Rita
switchyard

FGPC 230 KV TRANSMISSION LINE ENERGIZED

The FGPC 230 KV Sta. Rita – Calaca transmission line is energized. After more than 2-years, from right-of-way (ROW) acquisition to construction, the new transmission line is ready to provide commissioning power for the 1000 MW power facility at Sta. Rita, Batangas City.

The line was energized on 11 August 1999 making it one of the fastest transmission lines ever built and commissioned in the country.

The transmission line links the Sta. Rita 1000 MW power generating facility to the National Power Corporation (NPC) substation at Calaca, Batangas providing an avenue to export power to the end users. Stretching approximately 35 kilometers, the line traverses a total of 58 barangays comprised by 8 municipalities and a city.

First Philippine Balfour Beatty (FPBB) undertook the construction of the line as the main subcontractor of Siemens. It adopted NPC’s technical specifications to ensure a safe and reliable line. During construction, safety has become one of the major concerns. Internationally accepted safety standards were adopted by the contractors, which resulted in zero casualty over the duration of the project implementation.

The transmission line was built pursuant to the Substation Inter-connection Agreement (SIA) entered into by FGPC, NPC and Meralco. Under this agreement, the line will be transferred to NPC after completion, and, henceforth, NPC will undertake the operation and maintenance of the facility.

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