First Gen, EDC earmark $1B for power projects
MANILA, Philippines—Lopez-led firms First Gen Corp. and Energy Development Corp. (EDC) will spend at least $1 billion (about P45 billion) this year to implement their power projects that can generate 600 megawatts of power.
On the sidelines of the Arangkada Forum on Wednesday, First Gen president Francis Giles Puno said the company expected its 2014 capital outlay to reach $700 million for two San Gabriel plants. Of the amount $600 million will be spent for a 414-MW natural gas facility in Batangas, which broke ground in January this year.
First Gen has tapped Siemens AG for an equipment supply contract and Siemens Inc. for the engineering, design, procurement, construction and completion of the San Gabriel facility.
Another $100 million will be allocated for a 100-MW Avion gas-fed facility to be put up in the same area.
These facilities, which will use liquefied natural gas (LNG), formed part of First Gen’s vision to build a portfolio of more than 1,300 MW of additional power generation capacity up to 2019. These will add to the existing gas facilities of First Gen, which owns and operates the 1,500-MW Sta. Rita and San Lorenzo power plants.
These plants currently get their natural gas requirements from the Malampaya gas field off Palawan.
EDC, according to Puno, will also be spending some $300 million this year for the completion of its 87-MW Burgos wind farm. This facility is expected to start commercial operations this year.
The $300-million Burgos Wind Project, EDC’s initial foray into the wind energy business, is seen as one of the biggest investment projects to date in Ilocos Norte. EDC broke ground for the project last year and signed an EPC contract with Vestas, the world’s leading wind turbine manufacturer, also last year.
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