The $500 million San Lorenzo CCGT facility generates 500MW electrical power. It is located in Batangas City, along the Batangas Bay, around 100km from the Philippine capital Manila. The plant is adjacent to the Santa Rita Project. This strategic location allows it to share common facilities such as the tank farm and fuel jetty, eliminating the need to duplicate various operational facilities.

The power station uses a Siemens GUD.1S.3A model gas turbine, a steam turbine and a horizontal heat recovery boiler (HRSG) in each power generation unit. Two power generation units have a single-shaft configuration.

The project’s cost is estimated to be $500 million inclusive of capital costs, working capital requirements, related pipeline financing, insurance and development costs. The finance was based on 75% debt and 25% equity structure. Cost reductions via pooling of operations, maintenance and other expenses are also achieved. The plant opened in 2002.

In December 2003, the owners of the Santa Rita and San Lorenzo power stations and Meralco concluded a review of the Power Purchase Agreement (PPA) as mandated by the Electric Power Industry Reform Act. The owners and Meralco cooperatively reviewed the PPA and incorporated a number of incentives intended to encourage increased plant utilisation and subsequent efficiency gains.

Gas and steam turbines

The San Lorenzo plant uses the Siemens GUD.1S.3A model gas turbine with horizontal heat recovery boiler combined-cycle gas turbine technology. The plant consists of two 250MW blocks in a single-shaft configuration. Each is equipped with a gas turbine, steam turbine, generator, heat recovery steam generation and auxiliary systems. The two model V84.3A gas turbines were manufactured at the Siemens/KWU plant in Berlin, and the two steam turbines and generators were supplied by Siemens/KWU plant in Mulheim.

“The power station uses a Siemens GUD.1S.3A model gas turbine, a steam turbine and a horizontal heat recovery boiler (HRSG) in each power generation unit.”

The EPC contract was a fixed-price turnkey, date-certain type contract with guarantees for completion and performance (heat-rate and output). The operational maintenance of the plant was awarded to Siemens Power Operations Inc (SPO), a 100%-owned subsidiary of Siemens Inc in the Philippines. SPO manages, operates and maintains the plant and performs the services and obligations specified in the Operations and Maintenance Agreement.

San Lorenzo power project ownership

The San Lorenzo Project was commissioned by the First Gas Power Corporation (FGP Corp), which is owned by First Gas Holding Corporation (FGHC), BG plc, and Lopez Inc. First Gas Holding Corporation has a 41.6% stake in FGP Corp, while BG plc has a 23.4% stake and the remaining 35% stake belongs to Lopez Inc.

The San Lorenzo project played a critical role in establishing the Philippine natural gas industry. It is a beneficiary of the country’s first natural gas production facility, in Palawan (developed by Shell).

The San Lorenzo Project also promotes increased competition in the Philippine power sector. It allows Meralco (the buyer of electricity) to meet its demand requirements and capitalises on the medium to long-term power supply of the gap forecast for the region of Luzon. San Lorenzo operates as a baseload facility. Meralco will take or pay for a MEQ equal to the net electrical output of the plant at a capacity factor of 83%. Based on Meralco projections, the tariff offered by FGP Corp, under the San Lorenzo Power Purchase Agreement (PPA), is competitive with the NPC grid rate and Meralco’s alternate sources of power.

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