First Gen seeks long-term LNG supply deals

Lopez-led First Gen Corp. is seeking long-term contracts to bring in liquefied natural gas (LNG) to fuel its gas-fired power plants and, in turn, help ensure an ample supply of electricity in the grid.

Francis Giles Puno, First Gen president and COO, said last week the current arrangement would allow the firm to purchase LNG cargoes from various suppliers via short-term agreements.

“But that may not necessarily be the cheapest source of gas for the country,” Puno said on the sidelines of the listed firm’s annual stockholders’ meeting.

With the demand for LNG projected to increase, Puno said First Gen was currently in talks with key players to procure LNG cargos in the medium- to long-term.

“We’re hoping that we can meet with the stakeholders, with the government, to coordinate a much more progressive way of buying imported LNG in the medium to long term,” he told reporters.

First Gen has been buying spot LNG cargo from different entities in the international market to ensure continued operations of its power plants and is currently processing the requirements for the fifth shipment.

The latest LNG cargo tapped by the company came from CNOOC Gas and Power Trading & Marketing Ltd., a Chinese state-owned company, involving a shipment of around 130,000 cubic meters for its subsidiary FGen Singapore Pte. Ltd.

First Gen received its first LNG cargo delivery in Subic in August last year while subsequent deliveries were made in its energy complex in Batangas from December 2023 to May this year.

The listed firm has four existing gas-fired power plants with a capacity of 2,017 megawatts, accounting for a fifth of the country’s energy needs. These are San Lorenzo, San Gabriel, Santa Rita and Avion gas facilities, all located in Batangas province. —JORDEENE B. LAGARE INQ