BG Group has interests in two gas-fired power generation plants, Santa Rita and San Lorenzo, located on the island of Luzon, 80 kilometres south of Manila. The two plants represent over 12% of the generation capacity for Luzon Island, including Manila.
SANTA RITA POWER STATION
Santa Rita power station is owned by First Gas Power Corporation (FGPC), a 100% subsidiary of First Gas Holdings Corporation (FGHC), in which BG Group has a 40% interest. The remaining 60% of FGHC is owned by First Gen Holdings Corporation (First Gen), a subsidiary of First Philippines Holdings Corporation. The Santa Rita
1 000 MW power plant entered full operation in 2000. Siemens AG operates the plant on behalf of First Gas. Gas and condensate purchase agreements were signed in 1997 and, in January 2002, the plant switched to natural gas operations when gas became available from the Malampaya field. Electricity is sold to the Manila Electric Company (Meralco) under a PPA that is effective until 2025.
SAN LORENZO POWER STATION
BG Group, in partnership with Unified Holdings Corporation (UHC), a 100% subsidiary of First Gen, developed, financed and constructed the San Lorenzo power plant. BG Group owns 40% interest in FGP Corp, and UHC owns the remaining 60% of the San Lorenzo project company. The San Lorenzo plant is co-located with the Santa Rita power plant and has a capacity of approximately 500 MW. Siemens AG operates the plant. Gas and condensate purchase agreements were executed similar to those for Santa Rita. San Lorenzo entered full commercial operation in 2002, selling power to Meralco under a PPA until 2027.
TRANSMISSION AND DISTRIBUTION
In 2001, FGHC was granted a 25 year franchise to install, own, operate and maintain a transmission and distribution pipeline business serving Luzon Island, including metropolitan Manila.