GE H series power generation gas turbine: in combined cycle configuration, this 480-megawatt unit has a rated thermal efficiency of 60%. (Photo credit: Wikipedia)First Gen Corp., the power generation unit of the Lopez Group, said it hopes to conclude this year the buyout of its British partner in a natural gas power generation venture.
A full ownership of First Gas Power Corp. will increase the attributable generating capacity of the company, top company executives said yesterday.
“Hopefully we can conclude it soon,” said First Gen Corp. chairman and chief executive Federico R. Lopez. “Hopefully even within the first half.”
British Gas Group, which is publicly listed on the London and New York Stock Exchange, owns 40 percent of First Gas, with the majority stake held by First Gen.
First Gas owns and operates the 1,000-megawatt (MW) Santa Rita combined-cycle natural gas-fired power plant and the 500-MW San Lorenzo natural gas power plant, both in Batangas.
The 40-percent stake was worth $400 million in 2010.
The pricing, along with other terms and conditions, is currently being negotiated by both parties, First Gen chief finance officer Emmanuel Singson said.
“What is nice with it is if we come to a deal, it is just like acquiring another 600 MW but it will not contribute to caps [on generating capacity],” Lopez said.
The Energy Regulatory Commission sets the capacity limits of power generators based on the prescribed market share per grid and on a national level.
To date, First Gen and its units have a gross generating capacity of 2,763 MW, of which 1,500 MW is natural gas, 1,129 MW is geothermal and 134 MW is hydropower. It accounts for 18 percent of the country’s total installed power generation capacity.
Lopez said the company still has a leeway to increase capacity by another 1,700 MW.
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