Wednesday, March 20, 2019

DOE gives First Gen go-ahead to construct LNG terminal

By Lenie Lectura -March 20, 2019

FIRST Gen Corp. of the Lopez group on Wednesday said it received from the Department of Energy (DOE) the notice to proceed for its planned FGEN Batangas liquefied natural gas (LNG) terminal.
“FGEN LNG Corp. [FGEN LNG], a wholly owned subsidiary of First Gen Corp. [First Gen], earlier on Tuesday received the formal approval of its application for a notice to proceed [NTP] from the Department of Energy [DOE], as defined in and required by the Philippine Downstream Natural Gas Regulation [PDNGR].  The application was for the construction of the FGEN Batangas LNG Terminal Project to be located in the First Gen Clean Energy Complex in Batangas City,” it said.
First Gen will construct an LNG terminal in Batangas City with its partner Tokyo Gas Co. Ltd.
Under the deal, Tokyo Gas will take a 20-percent participating interest in the FGEN LNG project and provide support in development work to achieve a final investment decision (FID).
Once an FID is reached, the parties will enter into a definitive agreement to proceed with the construction of the FGEN Batangas LNG terminal project.
First Gen is one of the biggest independent power producers in the country and the leading gas-power generation company in the Philippines with about 2,000 megawatts in operating gas assets composed of four gas-fired power plants—the 1,000-MW Santa Rita Power Plant, the 500-MW San Lorenzo Power Plant, the 414-MW San Gabriel Power Plant and the 97-MW Avion Power Plant, all of which currently operate on Malampaya gas supply.
“The FGEN Batangas LNG Terminal Project is intended to serve the natural gas requirements of existing and future gas- fired power plants of third parties and FGEN LNG affiliates,” it said.
First Gen’s onshore storage and regasification terminal will have a capacity to supply a minimum 5 million tons of natural gas equivalent to 5,000 MW and is expected to cost over $1 billion. 

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