LISTED First Gen Corp.
(FGEN) has chosen a Japanese company to handle the engineering, procurement and
construction (EPC) needs of its planned liquefied natural gas (LNG) terminal in
Batangas province.
In a disclosure on
Monday, the Lopez-led renewable energy company identified that firm as JGC
Corp., which has undertaken more than 20,000 projects — many of which involving
oil and gas — in more than 80 countries since its establishment in 1928.
“We congratulate JGC
for all of their hard work [that] has led to [it securing the] preferred
tenderer status for First Gen’s LNG terminal project,” Jonathan Russell, First
Gen executive vice president and chief commercial officer, was quoted as saying
in the disclosure.
“We look forward to
working with JGC to make this energy project of national significance a
success, as the project is crucial to ensure the continued operations of the
3.2 GW [gigawatt] existing natural gas-fired plants, given the expected and
continuing reduction in gas supply from the Malampaya field up to the
expiration of the contracts by 2024,” he added.
Russell was referring
to the 1,000-megawatt (MW) Santa Rita, 500 MW San Lorenzo, 420 MW San Gabriel,
and 97 MW Avion facilities, which reply on Malampaya for their supply.
“The early introduction
of LNG by FGEN would also enable LNG to immediately become a fuel choice for
any developer that is considering the building of new gas-fired power plants
with a lower carbon footprint that will support introduction of more
intermittent renewables for the Philippines as an alternative to building new
coal-fired power plants….” the First Gen official said.
First Gen subsidiary
FGEN LNG Corp. will develop the planned terminal in the First Gen Clean Energy
Complex in the villages of Sta. Clara, Sta. Rita Aplaya and Bolbok in Batangas
City.
JGC’s selection ends a five-year-long EPC tendering phase, during which 22
companies were invited to participate and 18 showed interest in the project.
This comes after the
project was declared an energy project of national significance in August,
after First Gen and its Japanese partner Tokyo Gas Co. Ltd. broke ground on the
planned facility in May, and after the Department of Energy approved in early
March the firm’s application for a notice to proceed to build the hub.
First Gen shares
increased by 30 centavos or 1.14 percent to close at P26.70 each on Monday.
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