TWO LOPEZ-LED companies have forged long-term agreements with Siemens Power Operations Inc., a subsidiary of Siemens AG, for the operation, maintenance and repair of their combined-cycle natural gas-fired power plants in Batangas.

In a disclosure to the Philippine Stock Exchange, First Gen Corp. said the O&M agreements were signed with First Gas Power Corp., which owns and operates the 1,000-megawatt Santa Rita natural gas facility, and with FGP Corp., for the 500-MW San Lorenzo gas plant.

According to First Gen, the O&M agreements both have a nominal term of 15 years and will replace the existing operation and maintenance agreements with Siemens, which are supposed to expire on July 31.

Siemens has been operating and maintaining the Santa Rita power plant since 2000, and the San Lorenzo power plant, since 2002.

FGPC is wholly owned by First Gas Holdings Corp., which is, in turn, 60-percent owned by the Lopez-led First Gen Corp. Meanwhile, FGP is 60 percent owned by Unified Holdings Corp., which is, in turn, wholly owned by First Gen.