Lopez-led First Gen Corp. is now targeting to complete by early next year the construction of a liquefied natural gas (LNG) terminal in Batangas.
First Gen, through its subsidiary FGEN LNG Corp., is developing the interim offshore LNG receiving terminal at the First Gen Clean Energy Complex in Batangas City. This is slated for completion by the end of the first quarter of 2023.
It earmarked $135 million this year for the LNG terminal.
The listed firm said earlier that not only would the project accelerate the ability to introduce LNG to the Philippines but also “serve the natural gas requirements of existing and future gas-fired power plants of third parties and FGEN LNG affiliates.”
In parallel, FGEN LNG and BW LNG, a unit of Bermuda-based maritime company BW Group, are building a floating storage regasification unit (FSRU) or vessel.
The FSRU will provide LNG storage and regasification services to First Gen’s existing and planned gas-fired power plants and other third-party terminal users.
In April last year, both FGEN LNG and BW LNG signed a five-year deal to charter the FSRU, a storage ship that has an onboard regasification plant capable of returning LNG back into a gaseous state.
The FSRU was renamed from BW Paris to BW Batangas, which will be carried out before its deployment to First Gen’s energy complex by the end of the second quarter or early third quarter of 2023.
“This change is intended to acknowledge the historical, current and future support given by the province of Batangas and by our hosts Batangas City and to underscore our commitment to supporting the energy security of the Philippines,” said First Gen executive vice president and chief commercial officer Jonathan Russell.
“BW LNG is proud to be working closely with FGEN LNG to ensure the timely delivery of the interim offshore LNG receiving terminal. We are honored that our FSRU will serve a critical role in meeting the energy needs of Batangas, Luzon, and the Philippines at large,” said Akbar Sha, Head of Gas Solutions at BW LNG.
First Gen had said the LNG facility would play a critical role in ensuring the energy security of the Luzon grid and the Philippines, particularly as the indigenous Malampaya natural gas resource continues to decline. INQ