Lopez-led First Gen Corp. decided to defer the shipment of its fifth cargo of liquefied natural gas (LNG), which was supposed to arrive in the country this month, an official said.
In a chance interview on Friday, Francis Giles Puno, First Gen president and COO, said the group has still enough supply from its last procurement.
In an earlier disclosure, the company said it awarded an LNG deal to Chinese company CNOOC Gas and Power Trading & Marketing Ltd. to bring in around 130,000 cubic meters (cu. m.) in May. Another supply contract was given to Japanese firm TG Global Trading Co. last month for about 125,000 cu. m., scheduled for July.
“We still have residual gas. So, we have to deplete residual gas,” he told reporters.
When asked about the arrival of the next batch of imported LNG, Puno said there was no definite date yet.
The official said the Philippines can also bank on the output of the Malampaya offshore field in Palawan, the country’s largest producing gas field catering to 40 percent of Luzon’s electricity needs.
Last year, First Gen awarded the first three cargo contracts to TotalEnergies Gas & Power Asia Private Limited, Shell Eastern Trading (Pte.) Ltd., and Trafigura Pte. Ltd. It received its first LNG cargo in Subic, while the remaining deliveries were brought to its import terminal in Batangas.
The company has a network of four gas-fired power plants with a combined capacity of 2,017 megawatts. San Lorenzo, San Gabriel, Santa Rita and Avion gas plants are all located in Batangas.
These gas-fired power plants have long relied on the Malampaya field until the group decided to blend it with imported LNG to provide consumers with a “least-cost solution.” The Palawan gas field is expected to run dry in 2027.
Last month, the company said it was exploring long-term contracts for LNG with international players to ensure the continuous flow of power to the Luzon grid.
First Gen is jacking up its spending by 15.5 percent this year to $1.27 billion. INQ