First Gas eyes Sucat power plant

BELFAST, Northern Ireland – The British partner of the Lopez-owned First Gas Power Corp. expressed yesterday their intention to bid for one of the National Power Corp.’s generating units and converting it into a highly efficient combined cycle power plant using natural gas.

British Gas (BG Group plc), the largest natural gas supplier in the United Kingdom and one of the biggest natural gas producers in the world, said it is ready to bid for the 600-MW Sucat power plant in Muntinlupa and converting it from an oil-fired to a natural gas-fired (generator) plant.

Napocor decommissioned the Sucat power plant about three years ago because of the high cost of operating it, poor efficiency and obsolete technology. It has been inoperative since 2000 and is one of the power generating plants being put up for sale by Napocor under the Electric Power Industry Reform Act (EPIRA).

British Gas Philippines country manager Anthony Barker told a group of visiting Filipino journalists here that First Gas is fully capable of converting the Sucat power plant into a natural gas-fired facility citing the wide experience his company has had in this endeavor. He said it was necessary for the Philippines to come up with policy guidelines for the development of its natural gas industry.

The newsmen were given a briefing and tour of British Gas’ Ballylumford power station, which British Gas bought in 1992 and converted to burn natural gas as a primary fuel in 1996. The natural gas that fuels the Ballylumford plant is piped in from Scotland, with much of the distance under the sea. First Gas envisions the Sucat power plant to use Malampaya natural gas to be piped in to Metro Manila via its distribution center in Batangas.

Paddy Larkin, Premier Power Ltd. business development manager said the success of the conversion of the Ballylumford power station from oil to natural gas is due to the British government’s support for the natural gas industry. Premier Power operates the Ballylumford power station for the BG Group.

The thrust to develop the natural gas industry was triggered by the need for cleaner and more environment-friendly fuels for power generation.

During the inauguration of Ballylumford’s new natural gas plant last September this year, Prince Charles noted the significance of the conversion to natural gas as it meant that the smoke emissions will be lessened equivalent to "10,000 cars taken off the road."

He added that the regulator (equivalent to the Energy Regulatory Commission) should be able to balance the need to protect the consumers and ensure the viability of the industry willing to put up new generating facilities to avoid power shortages.