First Gas sets roadshow for $100-M project

First Gas Power Corp. (FGPC) is set to embark on a month-long roadshow to Europe, Asia and the US this September to tap possible partners and financial institutions in raising $70 million to $100 million for its gas pipeline project.

"We are coming up with a team that will go to Europe, Asia and America to seek financial support for our new projects. We want to get an indication from banks which are friendly to us if they could help us in our future transaction," FGPC senior vice president Richard Tantoco said.

He added they would probably seek a couple of partners that would be willing to share with the company a 60 percent loan and 40 percent equity partnership scheme.

At present, Tantoco said the company is in the process of seeking an environment impact assessment (EIA) from the Department of Environment and Natural Resources (DENR).

"Right now, we are trying to get a community and environmental approval," FGPC president Peter Garrucho said in an interview during yesterday’s Polistrat Forum on Risks and Opportunities on Power Deregulation.

Garrucho said in terms of technical preparation, "we are very much ahead of where we are supposed to be".

He also clarified that the franchise of FGPC to operate a gas pipeline has not lapsed. "We still have a franchise and we are committed to pursue our plan to invest in a gas pipeline," he said, noting that the company is concentrating on the 100-kilometer Batangas-Manila (BatMan I) gas pipeline project.

FGPC has been studying this project for about four years now being the first power firm to get a franchise to build a gas pipeline. FGPC owns and operates two gas-fired power plants – Sta. Rita and San Lorenzo — in Batangas.

Aside from FGPC, several other firms have expressed interest to construct and operate the proposed $100-million BatMan I gas pipeline. These are Japan Gas Corp., Korean Gas Corp., Petroliam Nasional Berhad (Petronas) of Malaysia, British Petroleum Plc., Korean Electric Power Co. (Kepco), Mashhor of Brunei, Chevron Texaco, Shell Philippines Exploration B.V., and PNOC Exploration Corp.