First Gas plants performing better than expected

MANILA, Philippines – First Gen Corp., the power generation arm of the Lopezes, said its subsidiary First Gas Corp. has enabled the optimal production of its two natural gas power plants in Batangas.

Federico Lopez, First Gen president and CEO, said the Sta. Rita and San Lorenzo natural gas plants continue to attain optimum availability levels of 96.4 percent and 96.55 percent, respectively.

Lopez said the performance of these power facilities have surpassed their internal target of 90 percent. 

He said this level was achieved “in the midst of all this financial activity, as we have not wavered in the pursuit of excellence in the operation of our assets.”

He said the investments in upgrading these natural gas plants have paid off.

“Our net dependable capacities for both plants continue to be between seven to eight percent better than guaranteed as we continue reaping the benefits of our investment in evaporative coolers and compressor mass flow upgrades,” he said.

Due to the upgrading, he said the fuel efficiencies of the plants are three to four percent better than guaranteed as well.

 “As a result of all these, both natural gas plants continue to be the two highest dispatched plants in the country, demonstrating our commitment to providing quality service for our electricity consumers,” he said.

In 2008, the dispatched levels of Sta. Rita and San Lorenzo plants in the Luzon grid were at 82.2 percent.

Last year, First Gen closed a $544-million refinancing facility for the Sta. Rita power plant. 

Lopez said another P5.4-billion worth of refinancing of Unified Holdings Corp. (San Lorenzo power plant) was also completed in 2008.

First Gas’ 500-megawatt San Lorenzo and 1,000-MW Sta. Rita procure their gas requirements from the Malampaya deep water gas-to- power project.

Aside from the two gas-fired power plants, First Gen also signed a $44.7-million contract to rehabilitate and upgrade the Pantabangan hydropower plant over the next three years.

The upgrades, Lopez said, will practically eliminate the obsolescence risk attendant with the 32-year old plant, especially in its control systems. 

He said it will also boost Pantabangan’s capacity by an additional 20 MW and increase the plant’s efficiency by three percent.