Lopez-led First Gen Corporation and Prime Infrastructure Capital Inc., headed by Enrique Razon, are entering into a 15-year lease agreement for the FGEN LNG liquefied natural gas (LNG) storage and regasification terminal in Batangas.
In a report by the Philippine Star, the lease agreement which was signed by FGEN LNG Corporation and Gas Aggregator Philippines Inc., is subject to the fulfillment of several prerequisites.
Additionally, Prime Infra planned to include the FGEN lease in its gas aggregation strategy, adopting a tolling business model. This allows Prime Infra to make the most of its current Malampaya project facilities and its expertise in the natural gas market.
The terminal, which is located in Batangas City, is expected to accelerate the introduction of LNG to the country and will supply the gas needed for First Gen affiliates’ current and future gas-fired power facilities.
First Gen operates four gas-fired power plants with a combined capacity of 2,000 megawatts (MW). These include the Santa Rita power plant with a capacity of 1,000 MW, the San Lorenzo power plant with 500 MW capacity, the San Gabriel power plant with 414 MW capacity, and the Avion power plant with 97 MW capacity.
The corporation shared that the government has considered natural gas as a transition fuel to aid the Department of Energy’s (DOE) 2020-2040 Philippine Energy Plan (PEP), ensuring that the supply of energy is secured while the country slowly introduces renewable energy (RE) into the energy mix.
