Thursday, August 29, 2019

First Gen LNG asks DOE to extend notice to proceed in Batangas project


By Lenie Lectura -
FGEN LNG, a wholly-owned subsidiary of First Gen Corp., is seeking an extension of its notice to proceed (NTP) for its FGEN Batangas LNG (liquefied natural gas) terminal project.
The NTP granted to FGEN LNG took effect on March 7, 2019, and will expire on September 7.
The Lopez-led firm said Thursday it has requested the Department of Energy (DOE) for an extension of the NTP. Pursuant to DOE Circular 2017-11-0012 (Rules and Regulations Governing the Philippine Downstream Natural Gas Industry), the NTP is subject to a six-month extension upon application with and approval by the DOE.
First Gen will construct an LNG terminal in the First Gen Clean Energy Complex 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 approximately 2,000 MW 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.
The company broke ground for its LNG project last May.

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