Shell to supply commissioning cargo to First Gen’s Batangas LNG terminal

Power producer First Gen has awarded a contract to a unit of LNG giant Shell to supply the first liquefied natural gas cargo to its FSRU-based terminal in Batangas, Philippines.

The award of the commissioning cargo follows an international tender issued by First Gen.

According to a statement by First Gen issued on Monday, Shell Eastern LNG will supply one LNG cargo of about 154,500 cbm within the required delivery window of August 1 to September 30, on a DES basis to FGEN’s unit, First Gen Singapore.

First Gen said the shipment will be loaded into the 162,000-cbm FSRU BW Batangas after facilitating its gassing-up and cooling down utilizing the delivered LNG cargo.

The FSRU will then return to the FGEN LNG terminal in Batangas, to complete commissioning activities, it said.

Subsequently, FGEN’s existing gas-fired power plants in its energy complex in Batangas City will receive these supplies.

FSRU arrives at FGEN’s terminal

In 2021, First Gen awarded the five-year FSRU contract to BW LNG, as it looks to replace declining volumes from the Malampaya gas field.

Last month, BW Batangas arrived in the Philippines to start serving First Gen’s LNG import terminal developed by its unit FGEN lng.

Prior to arriving in Batangas, the FSRU underwent modifications at the MMHE Shipyard in Johor, Malaysia.

First Gen said in the statement that the FSRU arrived at the LNG terminal’s jetty in Batangas on July 8.

The vessel will remain in Batangas until it is required to depart for Subic Bay to collect the first LNG cargo from Shell, it said.

First Gen also noted that its unit FGEN LNG previously announced the signing of a memorandum of understanding with Prime Infrastructure Capital, for the proposed lease and operation of the FGEN LNG terminal.

No definitive agreements have been signed, but FGEN LNG and Prime Infra continue to develop a gas aggregator framework of which the LNG terminal is a primary element, it said.

The deal is intended to make it possible to blend currently declining volumes of indigenous Malampaya gas with imported LNG.

This is to ensure a “least-cost solution for consumers, enhance energy security, and provide a competitive power generation market, while exploration activities leading to the commercial development of new indigenous natural gas fields are undertaken,” First Gen said.

This will be the second LNG import facility in the Philippines as Singapore’s LNG firm AG&P kicked off commissioning activities in April at the country’s first import terminal following the arrival of the 137,500-cbm FSU Ish at the terminal’s jetty in Batangas Bay.

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