First Gas eyes new power plant if bid for Sucat fails

First Gas Power Corp. (FGPC), one of the power generation units of the Lopez group, is studying the possibility of putting up a new power plant in case it fails to bid for the Sucat power plant.

"Acquiring Sucat is just one of the options we are looking at. We can start a greenfield," FGPC vice chairman and First Gas Holdings Inc. president Peter Garuccho said.

FGPC, which owns two gas-fired power plant in Batangas, has been eyeing to bid for the 600 megawatt (MW) Sucat power plant to justify its planned construction of a 100-kilometer natural gas pipeline from Batangas to Manila (the BatMan I project).

FGPC runs the 1,000-MW Sta. Rita and the 500-MW San Lorenzo power plants, which sell power to Manila Electric Co. (Meralco).

Garrucho, however, pointed out that the bidding for the Sucat power plant must first be completed before working out on the construction of the $100-million gas pipeline.

"We need to see the anchor load in place before making any decision on the pipeline," he said. FGPC already has the franchise to put up a gas pipeline facility.

The government has put off the bidding for Sucat until the first quarter of 2004 to look for a better package for the power plant. The Power Sector Assets and Liabilities Management Corp. (PSALM) is trying to transfer the purchase power contract assigned to the San Pascual Co-generation power plant to Sucat to serve as a "sweetener" for the winning bidder of Sucat. The San Pascual contract was not consummated due to the overcapacity in the system.

But Garrucho admitted that they are currently studying all these business prospects. "Of course, we need to make some studies," he said.

The FGPC official also pointed out that the bid price for the Sucat power plant as being presented to investors by the National Power Corp. (Napocor) was deemed "too high."

Aside from FGPC, government-run PNOC-Exploration Corp. (EC) is among those firms that have also shown keen interest in putting up the gas pipeline. There are at least five foreign firms also interested in the project: Japan Gas Corp., Korean Gas Corp., Petroliam Nasional Berhad (Petronas) of Malaysia, British Petroleum Plc. and Korean Electric Power Co. (Kepco).

Apart from the 100-km BatMan I, the government is planning to construct two more gas pipelines – the 150-km Bataan to Manila (BatMan II) and the 40-km Batangas to Cavite (BatCave).