Power producer First Gen has awarded a contract to energy trader Trafigura to supply the second liquefied natural gas cargo to its FSRU-based terminal in Batangas, Philippines.
The award of the LNG cargo follows an international tender issued by First Gen last month.
According to a statement by First Gen, Trafigura will supply one LNG cargo of about 154,500 m cbm within the required delivery window of November 25 to December 25, 2023, on a DES basis to the company’s unit, FGEN Singapore.
Trafigura will deliver the shipment to the 162,000-cbm FSRU BW Batangas that is currently berthed at the First Gen Clean Energy Complex (FGCEC) in Batangas City
FGEN will use the supplies for its existing gas-fired power plants, also located in the FGCEC.
The firm has a portfolio of four existing gas-fired power plants with a combined capacity of 2,017 MW that have been supplied for many years with gas from the Malampaya offshore field.
FGEN said its LNG terminal will accelerate the ability to introduce LNG to the Philippines, to serve the natural gas requirements of existing and future gas-fired power plants of third parties and FGEN’s affiliates.
Also, the company believes the LNG terminal will play a “critical role” in ensuring the energy security of the Luzon grid and the Philippines.
Second LNG terminal in Philippines
This is the second LNG cargo for the FSRU-based facility.
LNG giant Shell suppled the first LNG cargo for commissioning purposes to the LNG terminal in August, according to First Gen.
Shell delivered the LNG cargo from Australia onboard the 2021-built 174,000-cbm, LNGShips Manhattan.
As per the FSRU, First Gen awarded in 2021 the five-year FSRU contract to BW LNG, as it looks to replace declining volumes from the Malampaya gas field.
BW Batangas arrived in the Philippines in June 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.
This is 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.