(The Philippine Star) | Updated April 28, 2017 - 12:00am
MANILA, Philippines - First Gen Corp. expressed willingness to work with government to put up a liquefied natural gas (LNG) terminal to jumpstart the industry’s development and ensure the continued use of the fuel beyond the life of the Malampaya gas project.
In a statement, First Gen confirmed its executives had meetings with Philippine National Oil Co. (PNOC) senior management wherein the possibility of working together to develop an LNG infrastructure was discussed.
“We welcome government’s participation, through PNOC, in enabling LNG and further grow the gas industry in the country and we look forward to further talks with PNOC,” it said.
Previously, PNOC president Reuben Lista said the company is eyeing a majority stake in its planned LNG terminal possibly with First Gen Corp. and a foreign partner.
Lista said the company will be using its banked gas from Malamapaya as forward equity for the the LNG project, ensuring the state-run firm will be able to secure 40 percent of the total project cost.
Currently, there are 34 interested parties in investing in the LNG terminal, which increased from the 26 proposals the company received last month.
The LNG terminal will be composed of an initial 200-MW power plant, storage facilities, liquefaction and regasification units.
The Lopez-led firm said it has been developing an LNG terminal for the past five years to ensure that its 2,000 MW of operating gas plants will have LNG to replace Malampaya gas when it runs out.
“This will pave the way for the continued use of gas and the building of more LNG infrastructure,” First Gen said, noting it believes LNG represents the fuel of the future as it is competitive, clean and flexible and complements renewables and storage technologies.
Last year, First Gen said it is still pursuing its $1-billion LNG terminal as it looks to close the engineering, procurement and construction (EPC) tender and and partner selection process within 2017.
“An LNG infrastructure is vital to our country’s energy security and we are committed to participate in building world class facilities that are consistent with the administration’s thrust to develop the country’s infrastructure. First Gen believes LNG infrastructure can be developed not only in Luzon but also in Visayas and Mindanao which will allow access to gas in the island grids,” the Lopez firm said.