First Gen, SMC in talks on LNG project

By Lenie Lectura – September 25, 2018
from Business Mirror

LOPEZ-LED First Gen Corp. and Conglomerate San Miguel Corp. (SMC) are constantly in discussions for a possible partnership in pursuing their investments in the liquefied natural gas (LNG) space, but reiterated that no deal has been signed at the moment. 

“We’ve always had discussions with Ramon Ang. We have not formalized talks because there’s too many moving parts. But, at least, it’s good to know who is aware. It’s good to bring this together,” said First Gen Corp. Chairman Federico Lopez at the National Sustainability Summit for Millennials and Gen Zs at the University of Asia and the Pacific over the weekend.

He noted that “SMC and Ilijan are key components” to First Gen’s plans to pursue its billion-dollar LNG investment in the country. 

South Premier Power Corp. (SPPC) is the independent power producer administrator (Ippa) for the 1,200-megawatt (MW) natural gas-fired power plant in Ilijan, Batangas. Ilijan and the gas plants of First Gen are fueled by the Malampaya natural gas facility in Batangas.

SPPC is a unit of SMC Global Power Holdings, Corp., which in turn is the power arm of SMC.

“If they want to be part of it, that’s so welcome,” added Lopez.

First Gen had yet to choose a partner for its LNG project. Lopez said the company has received interests from European and Japanese firms. “But we have not nailed down that yet,” he said when asked if the company is close to sealing a deal.

“Maybe by 2019,” added Lopez, referring to when the company might probably pick a partner.

The planned LNG terminal, which will have a capacity to supply a minimum 5 million tons of natural gas equivalent to 5,000 MW, is targeted for construction next year. It is envisioned that the $1-billion facility will be finished in four years.

It will be located within the Lopez Group’s clean energy complex which houses the 1,000-MW Santa Rita, 500-MW San Lorenzo, San Gabriel and 97-MW Avion gas plants.