First Gen makes headway in construction of vital LNG hub

First Gen group on Friday finally signed with McConnell Dowell (MCD) an engineering, procurement and construction (EPC)contract for a liquefied natural gas (LNG) terminal in Batangas province, which they expect to start buil­ding within this quarter.

The Lopez-led group’s subsidiary FGEN LNG Corp. has also expanded a shortlist of invited bidders for a contract to provide a vessel that would serve as the interim floating storage and regasification unit (FSRU).

Their long view is to ultimately have a permanent onshore processing facility for LNG imports that would augment or replace waning production in the Malampaya gas field off Palawan.

“MCD has considerable experience in marine design and construction, including similar LNG projects, and it is worth noting that MCD constructed the existing liquid fuel jetty in 1998, which it will now modify under the EPC contract,” First Gen chief commercial officer Jonathan Russel said in a statement.

Russel said the Australia-based contractor has confirmed that it planned to engage First Balfour Inc. as a major subcontractor for installation of gear and instruments in the onshore gas receiving facility and the multipurpose jetty.

“The execution of the EPC contract represents another important milestone towards our objective of enabling the introduction of LNG to the Philippines,” Russell said.

Last September, Russel said the contract was expected to be signed within a few days and construction to start by the end of October.

Further, FGEN LNG sent Athens-based Dynagas Ltd. a binding invitation to bid for the provision of the FSRU.

Dynagas is the fourth preferred tenderer in addition to Norway-based BW Gas Ltd., Greece-based GasLog LNG Services Ltd. and the Asian subsidiary of Bermuda-based Hoegh LNG AS.

As a transitional component, the FSRU will enable FGEN LNG to advance the introduction of LNG to the country as early as the third quarter of 2022.