The Department of Energy (DOE) has apprised First Gen Corporation that it will need to secure six additional permits because of changes in the plans and design on its proposed liquefied natural gas (LNG) import terminal project.
Energy Secretary Alfonso G. Cusi said as he stressed that the delay of the FGen’s project was caused by the proponent itself “because they changed the plan from onshore terminal to FSRU (floating storage and regasification unit).”
He said First Gen already submitted the amendments to Oil Industry Management Bureau, a DOE division that handles application processes for LNG projects.
Cusi further indicated that part of the deliberations at the DOE was on whether or not they will require a totally new application from First Gen because of the project design tweak.
He expounded that the company also changed its timeline of completion to third quarter of 2022 instead of second quarter of 2022. Hence, its attention was called on that particular facet of its project implementation.
DOE-OIMB Director Rino Abad stated the additional permits to be secured by First Gen shall include those from the Department of Environment and Natural Resources (DENR); Philippine Ports Authority (PPA); and the Philippine Coast Guard.
“We’re talking of about six additional permits because of the change…at the same time, the discussion also made it to improving the timeline,” the energy official stressed.
Abad added “there was a review (of the First Gen project) because of the discussion that we should maximize the construction period,” noting that based on the project sponsor’s submitted timeline, it targets commissioning by August 2022 but the DOE was able to accelerate that to April of the same year.
He said the DOE already sent correspondence to First Gen last week, informing the Lopez firm of the additional permitting processes that its FSRU project will have to go through before it can proceed to construction phase.
The company previously told media that it is ready to kick-off construction by second half of this year – and that the venture has already been earmarked capital spending of US$200 to US$300 million from this year until 2022.
Upon its completion, the FSRU project of First Gen is seen as the first one to usher in LNG imports into the country, and this is an investment paradigm seen replacing the gas volume that the country will be losing from the Malampaya field.