DOE insists on FGen’s original LNG project completion

Published May 17, 2020, 10:00 PM By Myrna M. Velasco
https://business.mb.com.ph/2020/05/17/doe-insists-on-fgens-original-lng-project-completion/

The First Gen Corporation (FGen) has been urged to fast-track its floating storage regasification unit (FSRU) and complete it within the term of the Duterte administration.

Energy Secretary Alfonso G. Cusi told reporters that he had discussion with the company on its proposed liquefied natural gas (LNG) import facility, but he said the department is not agreeable with their new timeframe.

“We asked them to do it faster. We want it to be done within this administration,” he said.

The energy chief had a virtual meeting with the executives of First Gen last week, where he conveyed that the department could not concur with the new timeframe on project implementation presented by the company. Cusi, however, did not divulge the new timetable for the project.

In March, prior to the enforcement of enhanced community quarantine (ECQ), project developer firm FGEN LNG Corporation, a joint venture between First Gen and Tokyo Gas Co. Ltd., submitted application with the DOE for a permit to construct, expand, rehabilitate and modify (PCERM) its existing liquid fuel jetty at its project site in Batangas City, so the FSRU installation can properly fit in.

In the earlier timeframe cast, it was eyeing to start construction around May this year. Nevertheless, because of the novel coronavirus pandemic, that had been snagged.

The permit-to-construct (PTC) is the follow-on license that LNG project developers will need to secure from the DOE – and that must be obtained on or before the lapse of the initial notice-to-proceed (NTP), which is the authority given by the government agency for the pre-development activities that shall be accomplished by proponents.