Vires Energy seeks options for LNG project

 By Jordeene B. Lagare April 30, 2021

https://www.manilatimes.net/2021/04/30/business/business-top/vires-energy-seeks-options-for-lng-project/868683/

Vires Energy Corp. (VEC) is looking at other options to proceed with the development of its liquefied natural gas (LNG) project in Batangas, the Department of Energy (DoE) said.
“Vires is currently considering options and/or arrangements of other potential vessels,” VEC president Eduardo Mañalac said in a letter to the Energy Secretary Alfonso Cusi.

According to the DoE, Vires Energy informed them that its original plan to use the BW Paris LNG tanker vessel for its proposed floating storage and regasification unit (FSRU) did not materialize.

“We would like to clarify that at the time of our initial application for NTP (notice to proceed) in June 2020, we were in communication with BW for the possible use of their BW Paris FSRU for the LNG terminal component of our Integrated Project, which did not progress to a successful closure,” said Mañalac.

The Energy department issued a clarificatory statement on Thursday after First Gen Corp. said it obtained Norway-based BW Gas Ltd.’s commitment for its planned LNG facility as early as November.

In a disclosure, First Gen said BW Gas unit BW FSRU IV Pte. Ltd. already contracted the BW Paris to FGEN LNG, Corp., First Gen’s subsidiary that will construct the LNG facility within the First Gen Clean Energy Complex in Batangas City.

The Lopez-led company cited the “commitment undertaking” given to FGEN LNG stating “the BW Paris was not contracted, either conditionally or unconditionally, to any person(s) (other than FGEN LNG) in a manner that would prevent the BW Paris from being available to be chartered by FGEN LNG to meet the requirements and timeframe of the project.”

FGEN LNG already signed five-year time charter party agreement with BW FSRU IV for the charter of a floating FSRU.

VEC, a subsidiary of listed A Brown Co., Inc., was the latest entity to secure an NTP for its Integrated Natural Gas-Fired Power Plant and Liquefied Natural Gas (LNG) Storage and Regasification Terminal Project, targeted to commence commercial operation in January 2023.

It has proposed the development of an FSRU with about 162,400 cubic meters of storage capacity to be located 1.6 kilometers from the southeastern coastline of Batangas Bay in Barangay Simlong, Batangas City.