FGen extends selection deadline for LNG project

by Myrna Velasco October 15, 2016

http://www.mb.com.ph/fgen-extends-selection-deadline-for-lng-project/

Lopez-held First Gen Corporation is extending the timeframe on its “partner selection process” for its planned $1-billion liquefied natural gas (LNG) terminal which it targets to set on stream as an option to post-Malampaya’s productive years.

First Gen President Francis Giles Puno told reporters that “right now, what we’re doing is spending time with them (prospective partners) to see what the fit is – what chemistry we will have because it’s a marriage.”

He said there are eight groups in their shortlist, which they see slugging it out through the end of their selection timeline – which could be around first half of next year. First Gen could offer up to 40-percent stake to targeted co-venturers.

Their enduring suitors have been a good mix of Japanese and European firms – each advancing their foot forward when it comes to having exceptional track record in LNG investment landscape.

The Lopez firm originally targeted to decide on “partner selection” this year, but as project implementation timeframe still gives it leeway, it opts to spend more time scrutinizing and assessing the potential of the candidates.

“We still have time, we don’t need to conclude this today – we really need to be able to do it, so by the time that we make investment decision tail-end of next year, we would already have a partner by then,” Puno said.

At 5 million tons, he added that the planned facility would be able to underpin the fuel needs of the country’s existing gas plants, plus a couple of “new builds,” including the three-phased greenfield gas power projects of First Gen.

Puno qualified their priority right now is on advancing the LNG handling facility to implementation phase – following completion of its tie-up arrangements with one or multiple partners; and award of engineering, procurement and construction (EPC) contract.

First Gen just completed its 414-MW San Gabriel gas power facility, and Puno indicated that the second phase 414MW Sta. Maria plant may need to wait a little longer; and also that of the third one St. Joseph of the same capacity.

“Sta Maria can wait, so we are focusing right now on the LNG facility and the partnership. But the partnership will probably be co-investors also in Santa Maria and St Joseph,” he said.

The company is also open to possibility that the government – through Philippine National Oil Company – could join as investor in the onshore termina.