San Lorenzo power plant project on schedule

Construction work for the 500-megawatt (MW) San Lorenzo gas-fired combined cycle power plant is on schedule, the plant is expected to start commercial operations in 2002.

San Lorenzo will reinforce the 1,000-MW Sta. Rita power plant resulting in 1,500-MW baseload being fed directly to the Manila Electric Co. (Meralco). The Sta. Rita plant was inaugurated Thursday by Pres. Estrada, marking the start of test runs in preparation of commercial operations later in the year.

The $500-million (approximately P20-billion) San Lorenzo plant in Batangas was constructed by Siemens AG, the same firm that put up the Sta. Rita plant just meters away from former. The financial packaging of the San Lorenzo plant involved a major German financial institution and 10 international commercial banks.

Construction work for the San Lorenzo plant started last year, just as the Sta. Rital plant was being given the finishing touches.

The Sta. Rita and the San Lorenzo power plants will be the first beneficiaries of the country's first natural gas production facility from the Malampaya gas field in Palawan being developed by Shell Philippines Exploration BV.

First Gas Power Corp. (FGPC) operates the Sta. Rita plant while FGP Corp. runs the San Lorenzo plant. Both are subsidiaries of First Generation Holdings Corp. (First Gen), a joint venture between Lopez conglomerate First Philippine Holdings Corp. (FPHC), British Gas Plc, and Meralco Pension Fund.

During the inauguration of the Sta. Rita plant, Siemens executive vice president Gunther Willhelm said they remain committed to complete the San Lorenzo plant on schedule. The Sta. Rita plant was originally scheduled for completion in November 1999.

"Even as we celebrate, our work has merely begun as part of our contract is to handle plant operation and maintenance for an initial period of six years," Willhelm point out. Siemens was also responsible for the construction of the Sucat and Malaya power plants.

FGPC officials said they tapped Enron for a long-term fuel supply as a back-up plan, "in case something happens and the gas supply from Shell does not arrive or something happens, like a natural calamity."

The San Lorenzo plant will be powered by natural gas coming from the Malampaya gas fields in southern Palawan. Other recipients of the gas field are the Ilijan 1,200-MW plant operated by the Keilco Inc. and the 320-MW Pinamucan plant run by the Magellan Utilities Development Corp. (MUDC) is being exploited by Shell Philippines Exploration BV.