Publicly listed firm First Gen Corporation has shortlisted three foreign firms in the tender process for chartering of a floating storage and regasification unit (FSRU) on its targeted importation of liquefied natural gas (LNG) starting 2022.
These companies are BW Gas Ltd of Bermuda-headquartered BW Group, which is a leader in maritime energy transportation; GasLog LNG Services Ltd., a subsidiary of New York Stock Exchange-listed GasLog and is among the largest independent LNG midstream companies in the world; and Hoegh LNG Pte Asia Ltd., which is a subsidiary of Norwegian firm Hoegh LNG Limited and has specialization in the global
market of transportation and floating regasification services of LNG.
To recall, First Gen filed with the Department of Energy (DOE) first quarter of this year its application for a permit to construct, expand, rehabilitate and modify (PCERM) that will then underpin its proposed FSRU facility.
The company initially targeted implementation of the project to kick off in May, but given the enforced lockdown because of the coronavirus pandemic, timelines stalled for some time.
The FSRU installation shall entail construction works necessary “to modify the existing liquid fuel jetty that will enable it to become multiple-use or multi-purpose jetty,” First Gen said.
The other component shall include building an adjunct onshore gas receiving facility to receive and deliver gas to end-users.
“Once completed, the project will utilize an FSRU that will be berthed at the multi-purpose jetty to store and re-gasify LNG for use when required,” First Gen expounded.
It reiterated that the project just forms the initial phase of its bigger-scale FGEN Batangas LNG terminal, which will eventually be designed as onshore import facility and may command an investment of US$1.0 billion.
As emphasized, the LNG terminal “will play a critical role in ensuring the energy security of the Luzon grid of the Philippines.”
In what is deemed as “build and they shall come” investment paradigm, the firm indicated that “the entry of LNG to supplement and eventually replace Malampaya gas will encourage new power plant developments, as well as industrial and transport industries, to consider it as a replacement to more costly and polluting fuels.”
First Gen qualified that the FSRU facility will “accelerate its ability to introduce LNG to the Philippines as early as third quarter of 2022 and is intended to serve the natural gas requirements of existing and future gas-fired power plants of third parties and FGEN LNG facilities.”
The country currently has more than 3,200 megawatts of gas-fed electric generating capacity – the bulk of which are with the First Gen group; and the other facility is under an independent power producer administration (IPPA) arrangement with South Premiere Power Corporation of the San Miguel group.