Britain's BG to divest from Philippine plants, says partner

30th September 2010, Comments 0 comments

British energy giant BG Group is to sell its interests in two Philippine power plants to a South Korean firm for about 400 million dollars, BG's local partner said Thursday.

The deal to sell to Korea Electric Power Corp (Kepco) its 40 percent stakes in the 1,000-megawatt Santa Rita and 500-megawatt San Lorenzo power stations is expected to close in early 2011, First Philippine Holdings Corp said.

The plants, which burn natural gas piped in from the undersea Malampaya gas field off the western Philippines, are majority-owned by First Philippine Holdings and its subsidiary First Gen Corp.

"First Philippine Holdings Corp and First Gen Corp are evaluating their rights and options in respect of BG's contemplated divestment," the former told the Securities and Exchange Commission in a disclosure statement.

It did not say why the company formerly known as British Gas is selling its stakes in the combined-cycle power plants.

First Philippine Holdings spokesmen told AFP they would not comment further on the disclosure, while First Gen spokesmen could not be reached for comment Thursday.

Kepco operates several large power plants in the Philippines, including a 1,200-megawatt natural gas facility near the Santa Rita and San Lorenzo plants.

© 2010 AFP

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