First Gen buys out 40% OF British Gas stake in power plants

Lopez-led First Gen Corp. has acquired the 40-percent stake of the British Gas Group in the 1,500-megawatt natural gas facilities in Batangas for $360 million (roughly P15.5 billion), giving the power firm full control over the two power plants.

“We are extremely pleased with the closing and completion of this transaction. Sta. Rita and San Lorenzo continue to perform reliably and have delivered consistent returns since the start of their commercial operations in 2000 and 2002, respectively,” said First Gen chairman and CEO Federico R. Lopez.

“The natural gas plants were the Lopez group’s largest foray into the power generation business, prior to Energy Development Corp., and have been instrumental in making the Malampaya gas-to-power project viable. Our partnership with BG in the gas projects has been one of the most successful foreign partnerships in the country,” Lopez said.

The 1,000-MW Sta. Rita and 500-MW San Lorenzo power plants, which generate roughly a fifth of Luzon’s power requirements, consume half of the available gas from the Malampaya gas field off Palawan.