First Gen Corporation (FGEN) has awarded its first liquefied natural gas (LNG) cargo contract to Shell Eastern Trading Pte. Ltd., which will supply one LNG cargo of around 154,500 m3 between August to September 23.
This LNG will be used by First Gen Corporation (FGEN) to fuel its gas-fired power plants in the First Gen Clean Energy Complex located in Batangas City.
The BW Batangas FSRU was successfully moored and secured at the FGEN LNG Terminal in Batangas on July 8, marking another significant achievement for FGEN LNG Corporation (FGEN LNG), a wholly-owned subsidiary of FGEN.
Until it is necessary to go towards Subic Bay to pick up its first LNG cargo, the floating storage and regasification unit (FSRU) will remain in Batangas.
FGEN currently has four existing gas-fired power plants under its portfolio, with a combined capacity of 2,017 MW which has been receiving their gas from the Malampaya field.
The LNG Terminal will help speed up the nation’s ability to introduce LNG and meet the natural gas needs of current and upcoming gas-fired power plants owned by subsidiaries of FGEN.
The company is also confident that the terminal will be essential in safeguarding the Philippines’ and Luzon Grid’s electricity supply.
Earlier, FGEN LNG disclosed that the business had entered into a Memorandum of Understanding (MOU) with Prime Infrastructure Capital, Inc. (Prime Infra) relating to the planned lease and operation of the LNG Terminal that is now under construction.
Although no formal agreement has been reached, FGEN LNG and Prime Infra are still working to create a framework for a gas aggregator, of which the LNG Terminal is the main component.
The architecture for the Gas Aggregator looks to enable the ability to combine imported LNG with the Malampaya gas’s already dropping levels. These initiatives are all in response to the urgent national government request for large investments to maintain national competitiveness.