LOPEZ-LED energy company First Gen Corp. said its unit’s liquefied natural gas (LNG) terminal in Batangas is expected to be completed by the first quarter of next year.
First Gen’s subsidiary FGEN LNG Corp. intends to complete the project by the first quarter, the listed company told the stock exchange on Wednesday.
FGEN LNG and BW LNG, a floating gas infrastructure developer, also seek to rename their floating storage regasification unit project from BW Paris to BW Batangas.
The BW Batangas will provide LNG storage and regasification services to First Gen’s existing and planned gas-fired power plants and other third-party terminal users.
BW LNG is part of BW Group, a global maritime company involved in shipping, floating infrastructure, deep-water oil and gas production, and new sustainable technologies.
“This change is intended to acknowledge the historical, current, and future support given by the Province of Batangas and by our hosts Batangas City and to underscore our commitment to supporting the energy security of the Philippines,” said Jonathan Charles Russell, executive vice-president and chief commercial officer of First Gen.
FGEN LNG said the project will help ensure the energy security of the Luzon grid and the Philippines, “as the indigenous Malampaya natural gas resource continues to decline.”
According to a report from the Department of Energy (DoE), FGEN LNG’s terminal has a total capacity of 5.26 million tons per annum and an estimated construction cost of P13 billion.
The DoE said that 20% of the Philippines’ total power requirements, together with 27% of the Luzon grid, is provided by the Malampaya gas field. However, the Malampaya concession will expire in 2024, with its supply expected to reduce starting this year.
First Gen shares closed 1.16% higher at P17.50 apiece on Wednesday. — Ashley Erika O. Jose