FIRST Gen Corp. awarded its most recent liquefied natural gas (LNG) supply tender to Shell Eastern LNG.

Federico Lopez, First Gen chairman, shared the development at the sidelines of a forum hosted by the Net Zero Carbon Alliance in Makati City yesterday.

Earlier this month, First Gen opened an LNG tender involving 154,500 cubic meters of fuel for delivery on October 14 to 18 this year.

The company said the supply of the LNG cargo is under a delivered ex-ship basis at Subic Bay Freeport in Zambales which will be unloaded into the storage tanks of the BW Batangas floating storage regasification unit.

The LNG will then be utilized by First Gen’s existing gas-fired power plants with a combined capacity of 2,017 megawatts (MW) also located in Batangas.

However, Lopez said First Gen remains hopeful that they can secure a long-term LNG supply deal rather than rely on spot purchases.

“…I think at some point, the country really wants to get the best benefit of LNG. Long-term contracting is better because you can go to the market, to the LNG suppliers and say this is my amount, it’s big and it can be over a certain term, a much longer term…,” Lopez said.

“You get better terms and the country will get better terms and prices if you do it that way. I think that’s really where we really need to head. Right now, we’re just all buying on spot which can be done, but it’s, you know, it’s not the most efficient cost for the country. The country can do better if we all work together,” Lopez added.

First Gen, through its subsidiary, FGEN LNG Corp. has constructed an interim offshore LNG terminal project and executed a five-year time charter party for BW Batangas.

The FGEN LNG terminal is seen to accelerate the ability to introduce LNG to the Philippines, to serve the natural gas requirements of existing and future gas-fired power plants of third parties and First Gen’s affiliates.