FIRST GEN Corp. has secured a cargo of liquefied natural gas (LNG) from Shell Eastern Trading Pte. Ltd., marking a significant development in its interim offshore terminal project.
In a stock exchange disclosure on Monday, Lopez-led First Gen said the supplier, which trades as Shell Eastern LNG, is set to deliver about 154,500 cubic meters of LNG cargo between August and September to its subsidiary First Gen Singapore Pte. Ltd.
The listed energy company said it had conducted a successful international tender offer on July 7, awarding its first LNG cargo contract to Shell Eastern LNG.
The cargo will be transported by an LNG carrier, which will then handle the gassing-up and cooling-down of the BW Batangas FSRU or floating storage regasification unit at Subic Bay, before transferring the cargo into storage tanks on board.
The BW Batangas is the FSRU of First Gen subsidiary FGEN LNG Corp. and BW LNG. It will provide LNG storage and regasification services to First Gen’s existing and planned gas-fired power plants and third-party terminal users.
After the LNG transfer into the storage tanks, the BW Batangas will then return to FGEN LNG’s terminal in Batangas to complete commissioning activities.
“The LNG to be purchased by FGEN will subsequently be utilized by FGEN’s existing gas-fired power plants in the First Gen Clean Energy Complex in Batangas City,” First Gen said.
First Gen’s four natural gas-fired power plants with a combined capacity of 2,017 megawatts are currently being supplied by the Malampaya gas field.
Meanwhile, FGEN LNG has achieved the mooring and securing of the BW Batangas FSRU at the import terminal in Batangas. The vessel will remain there until it is set to collect the first LNG cargo that will be delivered by Shell Eastern LNG.
“The FGEN LNG Terminal will accelerate the ability to introduce LNG to the Philippines, to serve the natural gas requirements of existing and future gas-fired power plants of third parties and FGEN’s affiliates. FGEN believes the FGEN LNG Terminal will play a critical role in ensuring the energy security of the Luzon grid and the Philippines,” First Gen said.
LNG is being put forward as a solution to the country’s power needs amid a looming power crisis due to the expected depletion of the Malampaya gas field, the country’s only indigenous supply of natural gas.
Separately, Prime Infrastructure Holdings, Inc. and First Gen are jointly working to develop a gas aggregator framework that is expected to streamline the distribution of natural gas from the Malampaya field and imported LNG.
To recall, Prime Infra and First Gen have signed a memorandum of understanding for the proposed lease and operation of the latter’s LNG storage and regasification terminal.
The framework aims to blend Malampaya indigenous gas with imported LNG, which they call a “least-cost solution” to ensure energy security while also providing a competitive power generation market. — Ashley Erika O. Jose