Meralco Power Gen’s Singapore investments on track

MANILA, Philippines - Meralco PowerGen, the power generation arm of Manila Electric Co. (Meralco) said PacificLight Power, its investments in Singapore, is on track to be operational by the end of 2013.

The first of the two 400-megawatt units has been initially “first fired” synchronized with the power grid, and operated at low loads to produce steam from the heat recovery steam generator, said Meralco president Oscar Reyes.

He said the second 400-MW unit is still undergoing construction completion and pre- commissioning activities.

“We are looking forward to the start of commercial operations of PacificLight Power and cash flow from this investment starting 2014,” Reyes said.

PacificLight Power consists of two 400-MW combined cycle gas turbine power plants, in Jurong Island.

In April, Meralco announced that it has completed the acquisition of its 70 percent stake in an 800-megawatt liquefied natural gas project in Singapore for $488 million.

Meralco PowerGen Corp. and First Pacific Company Ltd. formed a joint venture, FPM Power Holdings Ltd. (FPMP) to acquire 70 percent of GMR Energy, which is now PacificLight Power. The remaining 30 percent is owned by Petronas.

The Singapore investment complements Meralco’s efforts to become a major energy player in the region.

With the joint venture deal, Meralco said the Philippines is expected to benefit from LNG combined cycle power plant technology.

The power plant’s output will be sold to SP Power Assets Ltd., the retail market, and to merchant supply operations.

Meralco is also looking at expanding in other countries such as Myanmar, Thailand, and Vietnam.

Aside from the Singapore investments, Meralco PowerGen remains focused on the Philippines as it builds its power generation portfolio.