News Releases from August, 2019
Aug 26, 2019
First Gen Corp. is developing a pumped-storage facility to increase the capacity of the 132-megawatt Pantabangan-Masiway hydro plant in Nueva Ecija by another 100 MW.
“The facility is expected to store and generate electricity by moving water between the Pantabangan reservoir and the Masiway reservoir which are situated at different elevations,” First Gen said in a disclosure to the stock exchange.
It said the project would allow the full-year operations of the power plant.
First Gen and Energy Development Corp. own 40 percent and 60 percent of First Gen Hydro Power Corp., the owner and operator of the existing Pantabangan-Masiway hydro plant.
First Gen is a subsidiary of First Philippine Holdings Corp., a conglomerate controlled by the Lopez family.
The Pantabangan pumped-hydro storage project is one of First Gen’s projects in the pipeline.
The company will also start the construction of the 32-MW Bubunawan run-of-river hydro project in Mindanao, “subject to clarity in the Philippine market and regulatory regime.”
First Gen has licenses to develop three other run-of-river projects in Mindanao including the 33-MW Tagoloan, the 30-MW Puyo and the Cagayan 1N.
The company is also pursuing its liquefied natural gas terminal project in Batangas and the expansion opportunities in geothermal, wind and solar.
First Gen posted $156 million in recurring attributable net income of the parent company in the first half, up 36 percent from $115 million a year ago, driven by the strong performance of its clean energy platforms.
“First Gen’s focus on clean, low-carbon and renewable energy continues to pay off as our first-semester results overtake last year’s. For the remainder of the year, we expect all the platforms to continue to deliver stable earnings,” First Gen president and chief operating officer Francis Giles Puno said earlier.
EDC delivered $49 million (P2.6 billion) in recurring earnings from its geothermal, wind and solar platform in the six-month period, better by $16 million (P900 million) than $33 million (P1.7 billion) in the same period last year as the Unified Leyte and Tongonan geothermal plant operations continued to normalize and deliver higher earnings after recovering from the damage caused by Typhoon Urduja in December 2017.
Originally posted by:
Aug 20, 2019
Lopez-owned First Gen Corporation has indicated to the Department of Energy (DOE) that it will be seeking extension for the notice-to-proceed (NTP) of its US$1.0 billion liquefied natural gas (LNG) import terminal project.
The company’s NTP will lapse this August, but under the Philippine Natural Gas Industry Rules, this could still be extended by another six months upon application with and approval by the DOE.
“They (First Gen executives) did manifest informally that they will be filing for extension –they will need more time to reach financial closing and final investment decision,” Energy Assistant Secretary Leonido Pulido III has disclosed.
He added that the NTPs granted to the proponent of LNG import facilities are just for duration of six months, but there is a leeway for extension of another six months.
After the end of the six-month extension, he noted that the expected milestones from the project sponsor will be final investment decision (FID) and financial closing.
Following that process, Pulido emphasized that the next step will be for the project to move to construction phase and that will require another round of securing permit from the department.
“After the end of the six-month extension and having FID, they need to submit application for construction which is almost automatic,” the energy official explained.
First Gen already broke ground on its propounded onshore LNG import terminal venture in May this year – but it manifested that FID will be reached by yearend up to early part of 2020 yet.
The company has been scouting for other partners that will share in equity investment in the project – on top of the 20-percent stake already cornered last year by Tokyo Gas Co. Ltd.
The FID announcement, according to company executives, will coincide with the firming up of new joint development agreements (JDAs) with other targeted partners – which are also likely deep-pocketed global players in the LNG sector.
Beyond the import terminal, First Gen has also been casting two greenfield power projects that will have aggregate capacity of 1,200 megawatts via its blueprinted Santa Maria and Saint Joseph power projects.
The targeted timeline of completion of the new power facilities will be in 2024; and these capacities are now being offered in the competitive selection process (CSP) for greenfield capacity of power utility giant Manila Electric Company.
Originally posted by:
Aug 17, 2019
MANILA, Philippines — First Gen Corp. (First Gen), the listed energy company of the Lopez Group, reported a net income of $156 million or P8.2 billion in the first half, up 36 percent year-on-year.
Consolidated revenue from the sale of electricity increased by 15 percent to $1.1 billion or P58.1 billion.
First Gen’s Energy Development Corp. delivered recurring earnings from its geothermal, wind, and solar platform of $49 million or P2.6 billion.
All four of First Gen’s natural gas-fired power plants delivered increased recurring earnings.
“While the two older plants, — the 1,000 MW Santa Rita and the 500 MW San Lorenzo — benefitted from lower operating expenses, the two newer gas plants — the 420 MW San Gabriel and the 97 MW Avion — generated higher electricity sales from their respective customers,” First Gen said.
The gas platform generated $105 million (P5.5 billion) in the first half, up 19 percent.
First Gen’s focus on clean, low carbon and renewable energy continues to pay off as first semester results overtook last year’s.
“For the remainder of the year, we expect all the platforms to continue to deliver stable earnings,” First Gen president and chief operating officer Francis Giles Puno said.
The company continues to work on the development of the country’s first LNG terminal.
Meanwhile, Lopez Holdings Corp., the listed holding company of the Lopez family, reported a net income of P4.18 billion in the first half, up 99.7 percent.
“The steady performance of the energy group under associate First Philippine Holdings Corp. as well as the strong recovery of investee ABS-BCN Corp. accounted for the results,” Lopez Holdings said.
Consolidated revenue grew 16 percent to P67.9 billion.
Originally posted by:
The Philippine Star
Aug 09, 2019
FIRST GEN. Corp. said on Thursday that the Department of Energy (DoE) had approved its application to have the company’s liquefied natural gas (LNG) import terminal project declared as nationally significant, making it easier for the company to secure permits.
In a disclosure to the stock exchange, the Lopez-led company said the Energy Investment Coordinating Council (EICC), a multi-agency panel led by the DoE, declared the FGEN Batangas LNG Terminal Project as an energy project of national significance (EPNS) under Executive Order (EO) No. 30.
Jonathan C. Russell, First Gen executive vice-president and chief commercial officer, said the project is crucial to ensure the continued operations of the 3.2-gigawatt existing natural gas-fired power plants in the country amid the expected reduction in gas supply from the Malampaya field up to the expiration of the contracts by 2024.
“First Gen will continue to work hard to ensure that this project will also be available to allow the development of new gas-fired capacity, with a lower carbon footprint that will support introduction of more intermittent renewables for the Philippines,” he said in a statement.
First Gen said its wholly owned subsidiary was issued a certificate of EPNS.
“EPNS are significant energy projects for power generation, transmission, and/or ancillary services including those required to maintain grid stability and security, and which are in consonance with the policy thrusts and specific goals of the DOE’s Philippine Energy Plan (PEP),” it said.
EO 30 intends to establish a simplified approval process and harmonize the relevant rules and regulations of all government agencies involved in the permitting process.
First Gen said the unit’s application was based on the project’s requirement to develop significant infrastructure and capital investment “involving complex technical processes and engineering designs that will result in a substantial positive impact on the environment.”
It said the project will also provide “a consequential economic impact that will contribute to the country’s economic development and healthy balance of payments.”
It added that the project is consistent with the DoE’s Nine Point Energy Agenda and PEP 2017-2040 as it promotes LNG importation as an option to supplement and replace Malampaya gas, ensuring a sustainable supply to develop the fuel for the future in anticipation of the depletion of the offshore resource.
First Gen’s import terminal will be built in the First Gen Clean Energy Complex in Barangays Sta. Clara, Sta. Rita Aplaya and Bolbok, Batangas City. It will be owned and managed by FGEN LNG.
The EPNS certification comes months after First Gen signed in December 2018 a joint development agreement with Tokyo Gas Co., Ltd. to pursue the development of the project where the foreign partner took a 20% participating interest.
In March 2019, FGEN LNG received the formal approval of its application for a “notice to proceed” from the DoE, as defined in and required by the Philippine Downstream Natural Gas Regulation.
First Gen said the entry of LNG would encourage both industrial and transport industries to consider it as a replacement to more costly and polluting fuels.
On Thursday, shares in First Gen closed higher by 1.75% at P26.20 each.
Originally posted by: