Lopez-led First Gen Corporation is looking for tenders from international liquefied natural gas (LNG) suppliers for its requirements from 2023 to 2027.
In a Manila Bulletin report, First Gen EVP and chief commercial officer Jonathan Russell said that the response so far “is very, very positive.”
Russell added that the company is also in discussions with LNG suppliers for a “master sale and purchase agreement” which would allow First Gen to conduct spot purchases of LNG on top of the required term supply.
First Gen is looking to launch its LNG import terminal by the fourth quarter. The supply for the terminal has also been assured. Russell said that securing supply alongside the completion of the terminal is crucial in ensuring grid security and supporting the development of renewable energy projects in the country.
“When complete, our LNG terminal in Batangas City will allow us to import natural gas from around the world, thus providing consumers with clean, reliable energy that will also displace power produced by dirty coal, even after our indigenous supply in Malampaya is exhausted,” First Gen Chairman Federico Lopez said during the company’s annual stockholders meeting on Wednesday.
The Malampaya gas field is seen to be depleted by the first quarter of 2027. Since 2020, however, First Gen’s plants would often switch to liquid fuel if the Malampaya experiences gas production restrictions.
First Gen is working closely with the Manila Electric Company (MERALCO) to assure a smooth transition for its fuel source from solely Malampaya-sourced fuel, to include LNG, Russell said.
MERALCO is the capacity buyer of First Gen’s generated power from its 1,000-megawatt (MW) Santa Rita, 500MW San Lorenzo, and 414MW San Gabriel natural gas plants.