First Gen unit inks supply deal with Slovakian contractor

MANILA, Philippines - First Gen Corp., through its wholly-owned subsidiary Prime Meridian Powergen Corp. (PMPC), said it has executed supply contracts with the Istroenergo Group (IEG) for the 97-megawatt Avion open cycle natural gas-fired power plant in Batangas.

The Avion plant will be completed and operational in April next year, said First Gen, the Lopez-owned power generation company.

IEG is an engineering contractor from Slovakia experienced in the construction of aeroderivative gas turbine power plants, the company said in its disclosure.

“The Avion plant will use General Electric’s LM6000 PC Sprint aeroderivative gas turbines and have the capability to burn natural gas or liquid fuel,” First Gen said.

The plant will be located adjacent to First Gen’s 1000-MW Santa Rita and 500-MW San Lorenzo natural gas-fired power plants in Batangas City, and is expected to be completed at a cost of approximately $150 million.

The Avion plant is part of the Lopez Group’s target to build an additional 1,342 MW in generation capacity between now and 2019 as it strengthens its operations in the Philippines to help meet growing demand and eventually become a global energy player.

Aside from the Avion power plant, some of the new capacity will come from the 414-MW (first phase) San Gabriel combined cycle power plant, the 150-MW expansion of the Burgos wind project and 30 MW from the Puyo run-of-river hydroelectric power plant.

In January, the company broke ground for the 414-MW San Gabriel natural gas-fired power plant, which will provide critical additional power supply by 2016.