News Releases from July, 2019
Jul 13, 2019
Lopez-owned First Gen Corporation has been recognized in the recently concluded “CWC Asia Pacific LNG Innovation Award” – bagging the runner-up spot for its planned 3.0 to 5.0 million tons per annum (mtpa) liquefied natural gas (LNG) import terminal project to be sited at its Clean Energy Complex in Batangas.
On the accolade bestowed on its LNG project, First Gen executive vice president and chief commercial officer Jon Russell asserted “we were honored that we were even nominated – it’s a vindication of all the hard work that we’ve done. And the fact that these experts recognize the Philippines is now taking us into the right steps to make the project happen.”
The top prize in the LNG awards went to the 12.88 mtpa Mozambuque LNG project of American firm Anadarko, which is at its full implementation stage.
Russell professed that the Mozambique project really deserved to win because it’s a venture that already moved headway into final investment decision (FID) and construction – and had the blueprinted first phase of the facility already completed.
Nevertheless, Russell is wishing for a big comeback for the Philippines next year, once the First Gen LNG terminal project clinches FID phase. “We shall be back, and maybe next year, we can win,” the First Gen executive stressed.
On the Philippines now being widely in the radar of global gas investors, Russell opined that the country is perceived a pivotal emerging player because it is now advancing its way into putting up the country’s first LNG import terminal — and such development is also considered trailblazing because it will mark the rebirth of the gas industry post-Malampaya.
“It’s difficult but I think we’ve got great opportunity. We’re working very hard to make it work,” Russell indicated; adding that “I think 2019 is an important year because we need to keep the lights on, so we need to make an investment decision later this year or early next year to make this whole project work.”
Global players in the LNG industry had singled out the Philippines as an “important market” that investors have been keeping a close watch on for next round of project developments.
At the recent CWC LNG Asia Pacific Summit in Singapore, Dr Pat Roberts, managing director of LNG Worldwide, reckoned that in the Southeast Asian region, Philippines and Vietnam are the markets heeding the LNG investment trajectory that Indonesia had set as a cycle for the gas sector in this part of the continent.
By year 2025-2030, it is seen that the global LNG sector will grow into a 450 to 500 mtpa market; with supply growth coming from Qater, Russia, Africa and the United States.
And that boost in supply, she added will all be “because of confidence in Asian LNG growth,” being that part of the world that will be setting trends on demand expansion.
For the First Gen project in particular, its LNG import terminal venture is targeted for up to 7.0 mtpa over the longer term. The initial investment for the 5.0mtpa phase has been crunched at US1.0 billion.
Parallel to the installation of LNG import terminal that is set reaching commercial operation in 2023, First Gen is likewise pushing forward the developments of two new gas-fired power plants with aggregate capacity of 1,200 megawatts.
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Jul 02, 2019
Industrial giant Siemens A.G. of Germany indicated that it will submit a tender for the engineering, procurement and construction (EPC) contract that project developer First Gen Corporation has been soliciting for its two new power projects.
The German firm was among those being invited by First Gen to submit a bid for the targeted EPC deal for the company’s 600-megawatt Santa Maria and 600MW Saint Joseph gas-fired power facilities.
“Siemens intends to submit a bid,” Siemens Regional Chief Executive Officer Dr Armin Bruck said, looking forward to a prospective fourth power plant development that it will be undertaking with the Lopez group.
Siemens had been the gas turbine supplier and EPC contractor in the last 414MW San Gabriel gas-fired power facility of the Lopez firm that reached commercial operations in 2016.
The company was also instrumental in the construction, supply of equipment and continually manning the operations of the first two gas-fired plants of First Gen – namely the 1,000MW Santa Rita and 500MW San Lorenzo power stations.
“Siemens had successfully built and now managing and operating the 414MW San Gabriel combined cycle power plant, which was the most efficient gas-fired power plant in Southeast Asia when it was commissioned in March 2016,” Bruck emphasized. The plant has a rated efficiency of more than 60-percent.
In addition, the German firm is the Operation and Maintenance (O&M) contractor of the Santa Rita and San Lorenzo plants – a deal stretching over two decades that it cemented with the Lopez firm at the development phase of the two gas-fired power assets.
“With this track record of being the O&M company of First Gen’s fleet in its Clean Energy complex in Batangas, we are confident that we can help First Gen to achieve similar good results with their planned two gas-fired power projects,” Bruck stressed.
The German firm executive further noted “we see huge potential in the infrastructure business in the Philippines – especially in the energy sector where Siemens has made major contribution in recent years.”
On a greenfield development sphere, the two new power projects of First Gen will command investment totaling US$1.2 billion – that is based on prevailing rule-of-thumb development cost for combined cycle power plants.
But as emphasized by First Gen EVP and Chief Commercial Officer Jon Russell, the final extent of capital outlay will be largely determined by the bids that will be submitted by prospective EPC contractors.
The planned Santa Maria and Saint Joseph gas-fired power projects are intended to be equipped with HL Class gas turbines – given the scale of their installed capacities; and the facilities are targeted to reach commercial operations in 2023 to 2024 parallel to the completion of the 5.0 million tons per annum (mtpa) LNG import facility of First Gen.
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