Lopez-led power generation firm First Gen Corp. said its subsidiary, FGEN LNG Corp., has applied for a permit to construct, expand, rehabilitate and modify (PCERM) its planned interim offshore liquefied natural gas (LNG) terminal in Batangas City.
It submitted the application to the Department of Energy (DOE). The PCERM contains the construction works necessary to modify First Gen’s existing liquid fuel jetty that will enable it to receive both large and small-scale LNG vessels as well as liquid fuel vessels, and the construction of the adjunct onshore gas receiving facility.
If the DOE approves the permit, construction can start as early as May this year so it can receive LNG as early as the third quarter of 2022, the company said.
Once completed, the project will allow First Gen to bring in a floating storage and regasification unit on an interim basis which will accelerate FGEN LNG’s ability to bring in LNG to the Philippines.
Earlier, First Gen also mentioned that bringing in LNG fuel to the country earlier than 2024 will be beneficial as it will take advantage of low prices in the world market.
Last September, the company said it is talking to at least 20 possible natural gas suppliers for the fuel that will be utilized in its terminal.
First Gen together with its partner, Tokyo Gas, has already completed significant pre-development work to make the project site construction ready.
The company is keen on developing the LNG terminal as it currently sources all its natural gas plants’ fuel from the Malampaya gas project whose contract is set to expire by 2024.
Among First Gen’s power plants that will need the fuel are the 1,000 megawatts (MW) Sta. Rita, 500 MW San Lorenzo, 97 MW Avion and 414 MW San Gabriel, all in the same vicinity where the terminal will be constructed.
At present, First Gen has 3,492 MW of installed capacity in its portfolio from natural gas, geothermal, hydro-electric, wind and solar power sources.
