MUDC sets P350-M capex budget

The Magellan Utilities Development Corp. (MUDC) is setting a P350-million capital expenditures outlay for this year. MUDC is a member of the F&J Prince Group of Companies, which include F&J Prince Holdings Corp. and Magellan Capital Holdings Corp.

The principal focus for this year's expenditure is the 320-MW capacity gas-fired power plant in Pinamucan, Batangas.

It is scheduled for commissioning in year 2004. MUDC is looking at feeding energy from the Pinamucan power plant to the Manila Electric Corp. (Meralco). The power generation firm has been holding talks with the electric distribution company as the latter wanted a reassurance that MUDC could deliver energy by 2004 as scheduled.

The reassurance is important for Meralco which aims to slowly reduce its dependence on the National Power Corp. (Napocor) while increasing its energy sources from independent power producers (IPPs) like MUDC.

Meanwhile, MUDC will be tapping Malampaya natural gas to run its dynamos. The company recently signed a memorandum of understanding (MOU) with Shell Philippines Exploration BV (Spex) which is seen as a prelude to a gas sales and purchase agreement (GSPA).

The Malampaya project has existing GSPAs with the 1,000-megawatt gas-fired Sta. Rita power plant, the 500-MW San Lorenzo power plant, and the 1,200-MW Ilijan Keilco plant. The three power plants are situated in Batangas.

The Sta. Rita plant is operated by First Gas Power Corp. (FGPC) while the San Lorenzo plant is run by the FPG Inc., both are aligned with the First Philippine Holdings Inc. The Ilijan plant is operated by the Korean Power Corp. (Kepco).

Actual drawing of gas from the fields to the Sta. Rita plant is expected to start by end 2000 while the San Lorenzo and Ilijan will start drawing natural gas between 2003 and 2004.