Name

1,000MW Santa Rita Power Plant

Location
Santa Rita, Batangas City 4200, Philippines
(On the coast near Batangas , Luzon. 100 km
south of Manila)

Owners
First Gas Power Corporation
60% First Gen Corporation of the Lopez Group
40% British Gas (BG) Group

Operators
Siemens Power Operations (SPO) in charge of
Operations & Maintenance (O&M)
Project summary

• The Santa Rita project is a 1,000 MW combined-cycle gas turbine (CCGT),

the most fuel efficient
format for power generation.
• Located 100 kilometres south of Manila, the plant is built near the 230 kV transmission
lines connecting it to the Luzon grid.

• The plant EPC contractor and operator is Siemens of Germany. The PPA off taker is Meralco
(itself a key FPHC group member) for 25 years, extendible to 40 years.
The term-debt is 15 years with
the private placement notably back-ended.
 First Gen British Gas Group
Corporation (40%)
First Gas Holding
(60%)
Corporation (100%)

EPC
Contract
FIRST GAS
and
Liquid Fuel POWER
Operating
Purchase CORP
ENRON and SIEMENS
Contract (FGPC)
Maintenan
ce

Substation Power
interconnection Purchase Gas Fuel
agreement Agreement Purchase
National Agreement
Power
Corporation Intermission
transmission SHELL
MERALCO
agreement
First Gen constantly strives to meet the various needs of it’s consumers and is
committed to be the preferred provider of energy services.

First Gen is the leading clean and renewable energy company in the Philippines, with
an installed capacity of 2,822.4 MW, more than half of which comes from
the Santa Rita and San Lorenzo plants. The company accounts for approximately
18.8 percent of total installed capacity in the Philippines today.
The Santa Rita project aims to:
• Use fuel that is indigenous in the country (reduce dependence
on foreign oil in power generation) .
•Produce electricity with lower emissions (compared to using
fuels like coal).
• is committed to provide safe, efficient, reliable, and
reasonably priced electric power to all customers.
• completion of the first stage of First Gas' undertaking, which in
total calls for 1,500 MW of generating capacity utilizing the
country's first commercial natural gas find in Malampaya,
Palawan.

Use locally produced fuel and reduce dependence on foreign

oil
Birth of the Industry
Upstream Sector
San Antonio Gas
Field, 2.7 BCF
Malampaya Gas
Field, 3.7 TCF
The Malampaya consortium -- composed of Royal Dutch Shell's
Shell Philippines Exploration B.V. (45% stake), Chevron (45%) and
PNOC-Exploration Corp. (10%)
President Benigno S. Aquino III and Energy Secretary Jose Rene D. Almendras witnessed the signing of the
contract for the next-phase development of the Malampaya Deep Water-Gas-to-Power Project also known as
Service Contract No. 38 (SC 38) last August 9, 2011.

The Consortium of the Malampaya project composed of Shell Philippines Exploration B.V., Chevron Malampaya
LLC, and Philippine National Oil Company–Exploration Corporation (PNOC-EC) signed a contract with Fluor Daniel
Philippines (Fluor) for the Basic Design and Engineering Package (BEDP) Contract for Malampaya.
The project, which is estimated to cost US$1 Billion (P42.48 Billion), will ensure that the production levels of the
natural gas project will be sustained through the drilling of additional wells (US$250 Million or P10.62 Billion --
Malampaya Phase 2 for completion in 2014) and the installation of compression capacity (US$750 Million or
P31.86 Billion -- Malampaya Phase 3 for completion in 2015). President Aquino and Secretary Almendras also
toured the Malampaya Onshore Gas Plant and interacted with the engineers in the plant in Tabangao, Batangas
as part of their working visit.
Source: pcoo.gov.ph
 On the onshore gas
Natural Gas from the plant, the natural gas
Malampaya Gas Field Brayton Cycle-
undergoes final Natural Gas is
in offshore treatment prior
Northwest Palawan pumped from the
delivery to customers . tank farm and is
is pumped in 24 inch Natural Gas Storage in
diameter pipes to an mixed with air and is
Gas Tanks near the Sta combusted in a
onshore processing Rita Power plant Jetty
gas plant in combustion chamber.
Port
Batangas.

Rankine Cycle- The The steam is then

The combustion gases exhaust gas from the sent to a steam
then goes through the gas turbine is then turbine where it
gas turbines where it directed to the Heat expands and
does work on the Recovery Steam produces work which
turbine blades. The gas Generator (HRSG) is also made to turn
turbine in turn does where it exchanges the generator to
work the generator to its heat with water to produce electricity.
produce electricity. generate steam.
http://www.firstgen.com.php
T
3

Brayton 4 11
Cycle 4s

10 12s 12
10s
2 Rankine
8 9
2s Cycle
8s
13
6 7 13s
1 6s

5
14s 14
s

s
 Gas Turbine Specifications
Model V84.3A
Base Load Output, 187
MW
TIT/RIT 0F(0C) 2390 (1310)
Heat Rate , kJ/kWh 9384
Efficiency %, LHV 38.3
Pressure Ratio 15
Exhaust 1071
Temperature 0F(0C) (577.2)
Combustor System Hybrid Burner
Ring (24)
# Compressor 15 (1 bar/stage)
Stages
# Turbine Stages 4
GT Pressure req. 28 Bar
 The V84.3A Gas Turbines have variable inlet guide
vanes in the compressor section to:
a) control the gas mass flow through the turbine
b) ensure that the exhaust temperature is
relatively constant between 50 and 100% load

Both the Santa Rita and San Lorenzo plants use the
Siemens V84.3A combined cycle gas turbine
technology, one of the most advanced and efficient
gas turbines available in the market today.
The V84.3A will provide utilities, independent power
producers and industrial customers with the lowest
life-cycle operating costs of any heavy-duty gas
turbine on the market today.

Hybrid-Burner-Ring (HBR)" combustor a more

compact combustion system, eliminating the two
cylindrical combustion chambers of the V84.3A and
doubling the number of burners to 24 while making
Siemens V84.3A, 60Hz gas turbine. Note partial
them smaller.
hybrid burner (24 burners) ring
Source: http://www.allbusiness.com/energy-
utilities/utilities-industry-electric-powerity/7083431-
1.html#ixzz1VKnYTvvC
SST-3000 series steam turbine-generator

http://www.energy.sie
mens.com
In July 2006, the Precooler Division won
a contract for six large three-sided
evaporative cooler systems for a retrofit
project in the Philippines. The units were
installed in one of the largest power
plant in the Philippines, Santa Rita and
San Lorenzo on V94.2A machines.

The cooling systems cool the air even in

the very humid environment of the
Philippines by up to 8 oC, thus
increasing the output of the machines
by approximately 8 MW or 5 % of the
maximum output.

The project demonstrates how effective

evaporative cooling can be even under
extremely humid conditions and enables
the end-customer First Gas Power
Corporation a substantial additional Evaporative Cooler: V94.2A
income, leading to a pay-back time http://www.munters.jp/upload/Case%20studies/Case%20Study_Santa
much less than one year. %20Rita%20Philipines_English.pdf
 http://images.search.yahoo.com/search/images;_ylt=A0oGd
UzkxjZOzDoA5IZXNyoA?ei=UTF-8&p=HRSG&fr2=tab-web&fr

Heat Recovery Steam Generator:

Babcock & Wilcox
O&M contract
The operation and maintenance strategy has been developed in accordance with the requirements
of the PPA. Maintenance will be performed to meet Meralco’s demand schedule with minimum
down time and maximum flexibility. Under all circumstances, plant integrity will be maintained by
the observance of good utility practice. A system of bonuses and penalties has been established to
provide operator incentives to achieve certain pre-agreed performance levels. When building nuclear
plants in the 1970s and 1980s, Siemens commissioned (and operated) them until passing them over
to their customers. Siemens’ newly formed Siemens Power Operations, Inc has been operating two
CCGT plants in Malaysia since 1995.

On 16 December 1996, FGPC executed an operations and maintenance (O&M) agreement with
Siemens Power Operations, Inc, a 100 per cent owned subsidiary of Siemens AG based in the
Philippines. Siemens role as both contractor and operator will help to ensure seamless transition
from the construction to the operations phase of the project. The Santa Rita O&M contract extends
to the longer of six years or the second major overhaul (77,000 operating hour sequivalent, and
includes start up-hours penalties) with an option to renew two additional terms.
FGPC is currently developing its own internal O&M team to potentially undertake the
operations and maintenance of the Santa Rita project. Thus, there exists the possibility that
FGPC may take over the O&M responsibilities of the plant in the future upon expiration of
the O&M agreement with Siemens.
The operator receives:
• a monthly fee (fixed);
• mobilisation;
• start-up payment;
• subject to FGPC being damaged, bonus/penalties for the performance of (a) heat rate and
(b) dependable capacity (net), although the penalty cannot be more than 21 per cent of the
year’s ‘Monthly Fees’; and
• minimum power generation (kWh) also has an incentive regime.

Project Finance in Latin America: Practical Case Studies – Chapter 1

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http://www.firstgen.com.ph/OurCommitments
.php
On 16 December 1996, FGPC executed an operations and
maintenance (O&M) agreement
with Siemens Power Operations, Inc, a 100 per cent owned
subsidiary of Siemens AG based in
the Philippines. Siemens role as both contractor and
operator will help to ensure seamless transition
from the construction to the operations phase of the
project.

From the Beginning:

Siemens O&M
Built by Siemens in two phases – first
Santa Rita, then San Lorenzo – the
power plants have a capacity of approximately
1,500 MW. From the beginning, First Gas tasked
Siemens with operating and maintaining
the facilities in Batangas on the
basis of a full-scale operations and maintenance
(O&M) contract. This
contract ran out after ten years. In
June 2010, First Gas and Siemens
signed a new contract to cover the
next 15 years of operation.
This model – under which a power producer delegates O&M to a second party – is
a fairly common one. Big utilities opt for it, as do – more frequently – independent
power producers such as First Gas that are running a business model different from that
of public utilities
 Siemens standard single shaft combined cycle
has
centrally mounted generator and steam
turbine exhausting to
axial condenser as can be seen here in left
background.

Project Finance in Latin America: Practical Case Studies

– Chapter 1
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© Euromoney Institutional Investor PLC
 Stoichiometric Combustion (Pure Methane)
CH 4  2(O2  3.76 N 2 )  CO2  2 H 2O  7.52 N 2
Combustion Equation Assuming 200% Theoretical Air
CH 4  4(O 2  3.76N 2 )  CO 2  2H 2 O+2O 2  15.04N 2

Given that the Heat Rate = 9, 384 KJ / kWh

HR  Turbine-Generator Power 9, 384  (187 1000)
mNatGas  
Heating Value of Natural Gas 50, 242.84
m = 34,926kg/h
m =9.701kg/s
 1st Law Equation (SSSF)
H R  Q  H P  Wsf
H R & H P  entalphies of reactants and products
Q = net heat added to the system from the surroundings
Wsf  net work done by the system
or
 (nMh )  Q   (nMh )  W
R
f
P
f sf

n  number of moles
M = molecular mass
h f = enthalpies of formation
 CH4  4(O2  3.76N2 )  CO2  2H2O+2O2  15.04N2

Since there is no work done in the combustion chamber

Q   (nMh f )   (nMh f )
P R

 (nMh
R
f )  1(44.011)( 2007.8)

 (nMh
R
f )  88,365.28 Btu / lb  mol CH 4

 (nMh
P
f )  (44.011)(3155.4)  3(18.016)( 4450.16)  2(32)(636)  15.04(28.016)(622.8)

 (nMh
P
f )  76, 264.98 Btu / lb  mol CH 4

Q   (nMh f )   (nMh f )   44, 053.8 Btu / lb  mol CH 4

P R

Q  2, 745.98 Btu / lbm CH 4

Q  6,386, 724kJ / kg CH 4
 State 11: 538°C, 105 bar, h11 =3469.46kJ/kg, superheated

s11  s12  s13  s14  6.713kJ / kg.K

T

State 12: 314.08°C, 27 bar, h12 =3068.22kJ/kg, superheated

State 13: 143.6°C, 4bar, h13 =2738.1kJ/kg, x=0.964
4s
4 11
State 14: 99.64°C, 1bar, h14 =2433.5kJ/kg, x=0.893

12s 12 h5  418.0kJ / kg
2 10s 10

2s 8
9
v5  0.001043m3 / kg or 0.016707 ft 3 / lbm
8s
13

6 7 13s v7  0.01736 ft 3 / lbm

1 6s

5
v9  0.01929 ft 3 / lbm
14s 14
s
 v5 ( P6  P5 )(144)
wp1   0.3116kJ / kg
778.16
v7 ( P8  P7 )(144)
T wp 2   2.492kJ / kg
3 778.16
v ( P  P )(144)
wp 3  9 10 9  9.410kJ / kg
778.16
4 11
4s h9  980.92kJ / kg
12s 12
h10  h9  wp 3  990.341kJ / kg
h7  604.3kJ / kg
2 10s 10
9
2s 8
8s

6 7 13s
13
h8  h7  wp 2  606.792kJ / kg
1 6s

5
h5  418.0kJ / kg
14s 14
s h6  h5  wp1  6418.3116kJ / kg
 wT  (h11  h12 )(0.339)  (h12  h13 )(1  0.321)
T
(h13  h14 )(1)
3

 664.45kJ / kg
W p1  wp1 (1)  0.3116kJ / kg
4s
4 11
W p 2  wp 2 (1  0.321)  1.692kJ / kg
W p 3  wp 3 (1  0.321  0.339)  3.1994kJ / kg
12s 12

2 10s 10
9
8
Wnet  wT   W p  659.247kJ / kg
2s
8s
13

6 7 13s
1 6s

5
14s 14
s
 qA  (h11  h10 )(0.339)  (h12  h9 )(0.339)  (h9  h8 )(1  0.321)
(h13  h7 )(1  0.321)  (h7  h6 )(1)
T

3  3436.88kJ / kg

wnet
4s
4 11

st   gt  0.383
12s 12
qA
 0.1918
2 10s 10
9
2s 8
8s
13

6 7 13s
1 6s

5
14s 14
s
total  56.5%
Santa Rita meets the environmental performance standards set
by the Department of Environment and Natural Resources:
• Continuous noise at any site boundary:
sound power level must be less than 60 dB(A)
• NOx for liquid fuel: less than 130 ng/J
• NOx for gas fuel: less than 86 ng/J

The principal environmental concerns associated with gas-fired

combined-cycle gas
turbines are emissions of nitrogen oxides (NOx) and carbon
monoxide.

Gas-fired combined-cycle plants produce less carbon dioxide

per unit energy output than other fossil fuel technologies because
of the relatively high
thermal efficiency of the technology and the high hydrogen-carbon
ratio of methane (the
primary constituent of natural gas).
“First Gas Holdings Corporation and BG plc have provided the 25 per
cent equity portion of the $1.390 billion capital expenditure
required for the Santa Rita and San Lorenzo power projects, both
of which are being developed by FGPC. The remaining 75 per cent
has been financed through borrowings from domestic and foreign
financial institutions. Of the loans, 90 per cent has been foreign
sourced, and they carry an average tenure of 10-12 years.”

$1.390B*(4/6)=$926,666,666 or $927.6M

$927.6M*25%=$231,666,666 or $231.6M
 Description of financing
US$630 million 15-year complementary
(parallel) facilities from KfW/Hermes, US
private placement, Mexim/MECIB,
Philippine banking units and the EIB for
development
of a 1,000 MW combined-cycle power plant
south of Manila supplied by a new
Shell gasfield offshore the Philippines.
Partial coverage for political risks is built in.

•The term-debt is 15 years with

the private placement notably back-ended.
$487 Million valued contract between FGPC
and Siemens

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Chapter 1
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For the period ended June 30, 2010, the Santa Rita and San
Lorenzo gas projects delivered earnings of $63.8 million, of
which First Gen’s 60-percent equity share is $38.3 million. First
Gen’s equity share in the gas projects is higher by $3.3 million
as compared to same period last year.

Source:
http://www.lopez-holdings.ph/about_us.php?id=126
"To survive, any business or corporation must be useful to the society it serves. “
- Oscar M. Lopez, Chairman of the Lopez Group

"Profit alone is not enough reason to go into business. But if we can serve people, then I
think our growth and our success will follow. If we take care of our customers, then they
will take care of us. " - Eugenio Lopez, Jr.

The Lopez Group Foundation, Inc. (LGFI) was

established in 2005 to coordinate and collate
information, as well as to facilitate cooperation among
different, but similarly aligned projects relating to
corporate social responsibility (CSR) of the nine
member foundations: ABS-CBN Foundation, ABS-CBN
Bayan Foundation, Don Senen Gabaldon Foundation,
Eugenio Lopez Foundation, First Philippine
Conservation, Knowledge Channel Foundation and
Meralco Millennium Foundation.
The company is also committed in enhancing the competitiveness, quality, and reliability
of its products and services. They use mainly indigenous, clean and renewable energy
sources for their power plants.
Environmental Stewardship/Corporate Social
Responsibilities Conscious of the fact that natural gas is the
cleanest form of fossil fuel, First Gas developed
an environmental program that ensures the
environment within its compound and
adjacent to it is also protected and preserved,
if not further enhanced. One of its major
projects is the protection and preservation of
the mangrove area inside its compound.
Mangroves are not only important nursery
habitats for fish and crustaceans, it is also a
biological filter for estuarine waters and acts as
a carbon sink that captures and stores carbon
dioxide and other pollutants.
With the continuous monitoring of the seawater and
regular cleanup of its beach area behind the First Gas
power plant, the beach has now become a rare
nesting site for some Olive Ridley turtles, proof of
the healthy condition of the beach area. Hopefully,
after years and years of wandering in the vast
oceans, these turtles will come back to nest in the
same area where they were hatched.
A gas turbine, also called a combustion
turbine, is a rotary engine that extracts energy
from a flow of combustion gas. It has an
upstream compressor coupled to a
downstream turbine, and a combustion
chamber in-between.

Gas turbine engines have three parts:

Compressor - Compresses the incoming air to
high pressure
Combustor - Burns the fuel and produces high-
pressure, high-velocity gas
Turbine - Extracts the energy from the high-
pressure, high-velocity gas flowing from the
combustion chamber.
• Cool the air at the compressor inlet to help
increase the density of air flowing into the plant,
thereby increasing the specific output. It also
reduces the compressor-specific work input and
hence increases the net output.
wsf  h1  h2 WC  mc p (T2  T1 )
k 1
T2
WT  WC  rp k
th  T1
QA
 Sta. Rita Aghada
Capacity 1000 MW 963 MW
Location Sta Rita, Batangas Aghada, Midleton,
City Co. Cork, Ireland

Gas Turbine Siemens SGT6 -

4000F GT26 gas turbine
with a low-NOx
EnVironmental (EV)
burner

Cycle Efficiency 56.5% 59%

Pollutants 0.6 lb/ft3 SOx SOx and dust
emissions emissions
7.6 lb/ft3 0.45kg/kWh
particulate matter
120,000 lb/ft3 CO2
Aghada, Co Cork -
Ireland's largest power station
• The Santa Rita project was able to meet its objectives (decrease dependence on
foreign oils and emits lesser pollutants than plants fired by other fuels like coal)
but they can do something more about the emissions. Also. The exhaust gas
(100oC) can still be used for heating.

•Decrease dependence on foreign oils

• It generate profit:

First Gen’s consolidated revenues still increased by 6.3 percent to $646.8

million in the first semester.

The increased revenues reflected the higher dispatch (output) and fuel prices
of the 1,000-MW Sta. Rita and the 500-MW San Lorenzo natural gas plants
which contributed stable earnings of $37.6 million.
powerservices.lakho.comhttp://powerservices.lakho.com/2009/12/02/single-shaft-combined-cycle-power-
generation-system/

http://www.power-technology.com/projects/aghada/
http://www.esb.ie/main/about-esb/aghada-new-build.jsp

http://www.bg-
group.com/OurBusiness/WhereWeOperate/Pages/pgPhilippines.aspx

http://www.fphc.com/MajorInvestments.php?ArticleID=31

http://business.inquirer.net/13031/first-gen-power-energy-dev%E2%80%99t-corp-
post-net-losses-after-geothermal-decommissioning

http://www.siemens.com/answers/ph/en/index.htm?stc=phccc020002