DOE likely to approve First Gen’s LNG project in Batangas

By Lenie Lectura - March 5, 2019

https://businessmirror.com.ph/2019/03/05/doe-likely-to-approve-first-gens-lng-project-in-batangas/

THE Department of Energy (DOE) is likely to approve the application of First Gen Power Corp. for a permit to proceed with its plan to construct the FGEN Batangas LNG (liquefied natural gas) terminal project.

Energy Undersecretary Felix William Fuentebella said the evaluation on First Gen’s application is about to be finished. He said initial results of the Lopez led-firm’s application are “positive,” adding the application of another applicant may not be approved.

“The review of the First Gen project is almost complete and appears to be positive. It will have to be formalized by C-REC, the Centralized Review and Evaluation Committee,” Fuentebella said.

The C-REC is expected to finish its evaluation this week, after which, a report will be submitted to Energy Secretary Alfonso Cusi for his signature.

The proposed 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.

First Gen operates the following gas plants: the 1,000-megawatt (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.

First Gen’s onshore storage and regasification terminal will have a capacity to supply a minimum of 5 million tons of natural gas equivalent to 5,000 MW and is expected to cost at least $1 billion.

FGEN LNG signed a joint-development agreement (JDA) with Tokyo Gas Co. Ltd., Japan’s largest natural gas utility. The JDA is a preliminary agreement between the parties to jointly pursue the development of the LNG terminal project located in Batangas.

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.

Fuentebella also said the application for a notice to proceed (NTP) filed by US floating LNG player Excelerate Energy  is “not sufficient.”

He said the C-REC is also evaluating the application, and the committee will be able to conclude its findings soon.

US floating LNG player Excelerate Energy filed in January an application for a permit to proceed with its plan to construct a proposed floating LNG terminal.

The pioneer and market leader in innovative floating LNG solutions is planning to construct the facility in Batangas.