First Gen Corporation postponed the procurement of its fifth shipment of liquefied natural gas (LNG) as it anticipates the greenlight of regulatory approvals for cost recovery related to LNG operations.
In a report by Philippine Star, First Gen President and chief operating officer (COO) Francis Giles Puno announced the deferment of the July LNG cargo delivery last Friday, citing current gas supplies.
Earlier, the company awarded a contract to TG Global Trading Company, a subsidiary of Tokyo Gas Company Ltd., for the supply of 125,000 cubic meters of LNG to First Gen Singapore Pte. Ltd.
This LNG cargo was scheduled for delivery this month to the BW Batangas floating storage and regasification unit (FSRU), a specialized vessel for importing, storing, and regasifying LNG, at the First Gen Clean Energy Complex.
The firm has sought approvals from the Energy Regulatory Commission (ERC) and the Department of Energy (DOE) to recover costs associated with LNG operations.
Puno emphasized that the LNG needs to be regasified before being converted into electricity, which is why the FSRU is essential.
While no new timeline was provided, First Gen’s COO indicated that the firm would proceed with the shipment once fully prepared.
Currently, the firm is managing its operations with residual gas from the Malampaya gas field, the country’s first and only indigenous gas resource, located offshore in Palawan.
First Gen’s four natural gas-fired power plants, with a combined capacity of 2,017 megawatts (MW), have been long supplied with Malampaya gas.
First Gen received its first LNG cargo at Subic in August 2023 and subsequent deliveries at its Batangas complex in December 2023, February 2024, and May 2024.
