First Pacific sets up JV to control Singapore LNG plant

FPM Power Holdings will acquire 70% interest in the plant.

The company is a joint venture between First Pacific Company Ltd. of Hong Kong and Manila Electric Company of the Philippines. The new 771 megawatt plant is located on Jurong Island. It is to begin commercial operations this December and will supply electricity to the Singapore grid.

FPM is acquiring a 70% interest in the plant for US$537 million. The remaining 30% interest will be owned by Petronas International Corporation of Malaysia. The buyers purchased the plant from GMR Infrastructure Ltd of India, and its subsidiary GMR Infrastructure (Singapore) Pte. Ltd.

The partners see the plant as a strategic investment that benefits from Singapore’s predictable regulatory environment and rapidly growing economy. The project finance lenders include Standard Chartered Bank, Singapore Branch, Axis Bank Ltd, Singapore Branch, CIMB Bank Berhad, KfW, National Australia Bank Ltd, and Portigon AG (formerly known as West LB AG, Singapore Branch).