First Gen moving towards construction of offshore LNG terminal

First Gen Corporation, through its subsidiary FGEN LNG Corporation, is making progress towards the construction of its offshore liquefied natural gas (LNG) terminal project in Batangas.

The project has finished its planning phase and is now moving construction phase beginning this March, First Gen Executive Vice President and Chief Commercial Officer Jon Russell said at the Philippine Energy Transition Forum on Thursday. The construction was supposed to commence, though, in the fourth quarter of 2020.

The offshore LNG terminal project will allow the company to bring in a floating storage regasification unit (FSRU) on an interim basis, which will enable it to introduce LNG to the Philippines, specifically as early as the third quarter of 2022. The facility would serve the natural gas requirements of existing and future gas-fired power plants of FGEN LNG affiliates and third parties.

First Gen has already issued a notice to proceed to McConnell Dowell, its engineering, procurement, and construction (EPC) contractor, which it hired for the project last year. McConnell Dowell will particularly undertake the EPC of both the multiple purpose jetty and onshore gas receiving facilities.

McConnell Dowell in 1988 also constructed the Lopez-owned firm’s existing liquid fuel jetty, which will be permanently modified with the new multiple purpose jetty.

First Gen is also in the process of selecting the FSRU provider. Following the completion of the initial evaluation, the company has selected the Europe-based preferred bidders to move on to the next stage of its binding tender process, namely BW Gas Limited, Dynagas Ltd., and Hoegh LNG Asia Pte. Ltd.

The LNG facility is seen as a strategic investment of the Lopez group to continue supplying the country with natural gas given the expected depletion of Malampaya’s natural gas resources in the next few years. LNG is also seen as a clean alternative to fossil fuels.