The First Gen Corp. has signed a deal with the Manila Electric Co. (Meralco) to provide baseload power supply from its San Gabriel power plant in Batangas.
The company disclosed that its wholly-owned First NatGas Power Corp signed a power supply agreement (PSA) with Meralco for the sale and purchase of around 414-megawatts (MW) of baseload capacity.
“With this PSA, Meralco secures competitively priced baseload electricity, since San Gabriel’s All-In Tariff at an 80 percent capacity factor is P3.77/KWh,” the company said.
This capacity will be sourced from the 414-MW San Gabriel combined-cycle natural gas-fired power plant located inside the First Gen Clean Energy Complex in Batangas.
Under the deal, capacity from San Gabriel is already available for purchase by Meralco; but the sale of power will only commence upon approval of the Energy Regulatory Commission (ERC).
The PSA will run until February 23, 2024, using gas from the Malampaya field unless extended by the parties “in the event that liquefied natural gas (LNG) becomes available.”
The Malampaya gas-to-power project in offshore Palawan expires in 2024.