First Gen shortlists 2 bidders for LNG project

Published March 22, 2021, 5:30 AM

by Myrna M. Velasco

FGEN LNG Corporation, the corporate vehicle of First Gen Corporation for its interim liquefied natural gas (LNG) import facility, has shortlisted two bidders for its targeted chartering of floating storage regasification unit (FSRU) for the project.

The shortlisted firms are BW Gas Limited and Hoegh LNG Asia Pte. Ltd. “FGEN LNG intends to select the FSRU provider by the end of March 2021,” the Lopez firm said in a Philippine Stock Exchange disclosure.

BW Gas, is a wholly-owned subsidiary of BW Group, which was founded in Hongkong and has a core business in shipping. This gas subsidiary is into global marketing of transportation and floating regasification services for LNG – and that includes construction, ownership and operation of FSRUs and other LNG carriers.

For Hoegh LNG Asia, this is a subsidiary of Norwegian firm Hoegh LNG Ltd. and it is listed with the Oslo stock exchange. The company also specializes in the global market of transportation and floating regasification services of LNG; as well as operation of FSRUs and LNG carriers.

The FSRU chartering will form part of the two-phased development cast by First Gen for its LNG import facility venture – wherein the most permanent solution will be the installation of an onshore LNG terminal.

For the interim FSRU facility, the targeted commercial operation will be third quarter of 2022, in time for the expiration of the first gas sale and purchase agreement (GSPA) of a power plant fuel being sourced from the Malampaya field.

First Gen previously indicated that it targets to cater to the needs of gas-fired power plants in the country, even those that are beyond its electric generating fleets in Batangas.

The company currently owns the biggest portfolio of gas-fed power generation facilities – including its 1,000-megawatt Santa Rita; 500MW San Lorenzo; 414MW San Gabriel and 97MW Avion plants.

Another major gas-fired facility in the country is the Ilijan power plant of 1,200MW capacity and is anticipated to be turned over to South Premiere Power Corporation, a subsidiary of San Miguel Corporation, at the lapse of its build-operate-transfer (BOT) contract by July of 2022.

Aside from power applications, First Gen is similarly eyeing to supply gas to locator-end users at special economic zones and even provide the electricity needs of various island-grids all over the country.