First Gen has launched a tender to secure liquefied natural gas for its FSRU-based Batangas LNG import terminal in the Philippines.
The company’s executive VP and chief commercial officer, Jonathan Russell, said the LNG import terminal “remains on track to be completed by the end of the year,” according to a document posted after the company’s annual general meeting on Wednesday.
Russel said in the document that the company is currently running an LNG supply tender for an initial term supply of LNG for delivery for the period 2023 up to 2027.
“In parallel, First Gen is in discussions with several LNG suppliers to secure master sale and purchase agreements, which will allow for spot purchases of LNG, in addition to the term LNG supply,” he said.
He added that the “response of the market on the tender has been positive.”
Gas-fired power plants
To remind, the firm controlled by the Lopez family last year awarded the FSRU contract to BW Gas, a unit of the Singapore-based gas giant BW, as it looks to replace declining volumes from the Malampaya gas field.
FGEN LNG, a unit of First Gen, is in charge of the project.
Besides the deal with BW, it signed a contract with Denmark’s Svitzer under which the latter will provide towage and other vessel support services for the FSRU-based facility.
BW will deploy its converted 162,000-cbm FSRU BW Paris to serve the import facility at First Gen’s existing Batangas energy complex.
In addition to the FSRU, the project consists of the modification of the existing jetty for multi-use and adding gas receiving facilities.
The facility would serve the natural gas requirements of existing and future gas-fired power plants of third parties and FGEN LNG affiliates, it previously said.
The Batangas terminal is one of the two LNG import facilities in the Philippines, along with AG&P’s LNG facility, which should start operations later this year. The country currently has no operational LNG import plants.
