FGen names LNG contractor

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    First Gen Corp. (FGen) has selected JGC Corp. of Japan as the preferred contractor for the engineering, procurement and construction (EPC) of its liquefied natural gas (LNG) terminal project in Batangas.

    The selection was made after an extensive EPC tendering phase which started in 2014, during which around 22 companies were invited and 18 expressed interest to participate in the project.

    “In the short term, we look forward to working with JGC to explore the exciting possibility of modifying First Gen’s existing jetty that would enable LNG to be brought in via a FSRU (floating storage regasification unit) on an interim basis. This would reduce the strain on Malampaya as its reliability continues to decline up to 2024, increasing the energy security of the Philippines and reducing the number of times that FGen will be requested to run on liquid fuel when Malampaya gas is unavailable,” said Jonathan Russell, FGen executive vice president and chief commercial officer.

    Russell said JGC’s first goal is to complete a detailed study focusing on modifications that can be made to FGen’s existing jetty that would allow the firm to receive large and small-scale LNG vessels while continuing to be capable of receiving liquid fuel.

    The company will then start the construction of the modified jetty to be able to bring in a FSRU on an interim basis to receive LNG as early as 2021.