Philippines power utility FPHC plans $3 billion capacity expansion

• 10 years ago (2013-05-30)
• Junior Isles

Europe 1061 Renewables 751

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First Philippine Holdings Corp. (FPHC) will expand its power generation portfolio with $3.14 billion in investments, according to a company executive.

FPHC is one of the largest power producers in the Philippines, with a total installed capacity of 2763 MW at the end of 2012. Of this figure, natural gas accounted for 54 per cent, geothermal 41 per cent and hydropower 5 per cent.

FPHC’s operating units First Gen Corp. and Energy Development Corp. will roll out new energy projects in the near future, boosting the generating capacity of its parent – Lopez group – to more than 4000 MW in the medium term; a capacity increase of around 50 per cent.

“The expansion in power generation within FPHC’s portfolio will continue. There is a need for more investments in power generation because of increased capacity requirements,” FPHC chief finance officer Francis Giles Puno said.

FPHC’s subsidiary First Gas will spend $1.6 billion in order to boost the San Gabriel liquefied natural gas (LNG) plants by 1300 MW over 2013-2018, with a further $1 billion invested in a LNG receiving and regasification facility.

“We hope to bring in LNG to supply the existing 1500 MW and double that to close to 3000 MW to justify LNG regasification terminal investment,” Puno said.

He also noted that several renewable energy projects were in the development pipeline, including three run-of-river projects in Mindanao with a combined capacity of 63 MW, and an 87 MW wind power project in Burgos, Ilocos Norte.

Puno said the wind farm will cost $300 million while the hydropower projects will require $240 million in investments in the next three years.