FGEN LNG Corp., a wholly-owned unit of First Gen Corp. of the Lopez Group, on Friday filed with the Department of Energy a notice to proceed with the construction of its proposed Batangas liquefied natural gas terminal project in the First Gen Clean Energy Complex in Batangas City.
“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,” First Gen said in a disclosure to the Philippine Stock Exchange.
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 megawatts in operating gas assets.
It operates four gas-fired power plants, namely 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, which all rely on Malampaya gas.
First Gen on Dec. 5 announced it signed a joint development agreement with Tokyo Gas Co. Ltd. (Tokyo Gas) to pursue the FGEN Batangas LNG Terminal Project.
“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 . Upon reaching FID under the JDA, the parties will enter into a definitive agreement to proceed with the construction of the FGEN Batangas LNG Terminal Project,” the company said.
Tokyo Gas, headquartered in Tokyo, Japan, is a leading LNG player with 130 years of experience and over 50 years in the LNG business. Tokyo Gas is one of the largest purchasers of LNG in the world with an annual volume of 14 metric tons a year.
Tokyo Gas was declared by the Energy Department as one of the seriously interested companies to develop an LNG facility in the country.
The government views an LNG terminal as a vital national infrastructure to maintain and enhance the country’s energy security once the Malampaya gas field in northwest Palawan is depleted by 2024.
“Finally, we both share the vision of the Department of Energy in the implementation of LNG projects in the Philippines. First Gen and Tokyo Gas intend to cooperate with all relevant stakeholders who share the same vision to participate in making LNG viable for the Philippines,” said First Gen president Francis Giles Puno.
