The Energy Regulatory Commission has approved the application of First Natgas Power Corp. to develop a dedicated line to connect the 450-megawatt San Gabriel natural gas power plant to the Luzon grid through the San Lorenzo switchyard in Batangas.
First Natgas, a wholly-owned subsidiary of First Gen Corp., is developing the San Gabriel power plant, a natural gas-fired combined cycle power plant located within the Sta. Rita and San Lorenzo power plant complex in Batangas.
The Malampaya gas project in northwest Palawan supplies natural gas to the existing 1,000-MW Sta. Rita and 500-MW San Lorenzo power plant also owned by First Gen. The San Gabriel plant will also use natural gas from the Malampaya gas field.
The power plant will be connected to the existing San Lorenzo switchyard through a dedicated point-to-point facility. The switchyard will connect the plant to the transmission system of the National Grid Corp. to allow it to deliver power to the grid.
ERC said the P117.87-million connection project would redound to the benefit of the power consumers in terms of continuous, quality, reliable and efficiency power supply.
“The application filed by FNPC for authority to develop, own and operate a dedicated point to point transmission facility to connect to the existing San Lorenzo switchyard, with prayer for provisional authority, is hereby approved [subject to conditions],” it said.
It said the operational control of the switchyard of the San Lorenzo combined cycle natural gas plant should be transferred to National Grid, which operates the country’s transmission network.
“In the absence of an assurance that the subject facilities will be operated without any adverse effect to the reliability of the grid and considering the distance is only 200 meters, it is hereby recommended that the operation and maintenance of said facilities will be through constant coordination with NGCP which was granted exclusive franchise to operate and maintain the transmission system,” it said.
Another condition is for First Natgas to operate the dedicated point-to-point transmission line and the facilities shall be developed and constructed in accordance with the system impact study and facility study requirements so as not to result in the degradation of National Grid’s transmission system.
The connection project includes the construction of the 200-meter transmission lines from the San Gabriel plant to the existing switchyard. It
The San Gabriel power project, estimated to cost $550 million to $600 million, is expected to be completed this year.
The output of the power project will “initially” be sold at the wholesale electricity spot market, the country’s trading floor of electricity.
The Malampaya gas project also supplies natural gas to the existing 1,000-MW Sta. Rita and 500-MW San Lorenzo power plants also owned by First Gen Corp.