First GenFirst Gen Corporation and Tokyo Gas Co., Ltd on Oct. 6, 2020 signed a joint cooperation agreement ( JCA) which represents the next phase of their joint development of First Gen subsidiary FGEN LNG Corporation’s interim offshore LNG terminal (IOT) project located at First Gen’s Clean Energy Complex in Batangas City.

The JCA is a preliminary agreement between First Gen and Tokyo Gas to jointly pursue the design, development, testing, commissioning, construction, ownership and operations and maintenance of the IOT project.

The IOT project consists of construction works necessary to modify the existing jetty that will enable it to become a multipurpose jetty and build an adjunct onshore gas receiving facility. The project represents the initial phase of the FGEN Batangas LNG terminal that was previously declared by the Energy Investment Coordinating Council through the Department of Energy as an “Energy Project of National Significance” under Executive Order No. 30.

Once completed, the IOT project will allow FGEN LNG to bring in a floating storage and regasification unit or FSRU on an interim basis and accelerate FGEN LNG’s ability to introduce liquefied natural gas or LNG to the Philippines.

Meanwhile, FGEN LNG selected McConnell Dowell Philippines as the preferred tenderer in respect of the engineering, procurement and construction of the project.

“This was a difficult decision that has been reached after the completion of an extensive tendering process, but we are delighted to announce that we have selected McConnell Dowell as the preferred tenderer for the First Gen IOT project,” said Jonathan Russell, executive vice president and chief commercial officer of First Gen.

Russell added: “We know that McConnell Dowell has extensive international experience building similar LNG facilities in Australia and Southeast Asia, and they will be assisted by the fact that they constructed the existing liquid fuel jetty at the First Gen Clean Energy Complex.”

FGEN LNG believes the IOT project will play a critical role in ensuring the energy security of the Luzon grid and the Philippines, particularly as the indigenous Malampaya gas resource is expected to be less reliable in producing and providing sufficient fuel supply for the country’s existing gas-fired power plants, and even less so for additional gas-fired power plants.

The entry of LNG will encourage new power plant developments, as well as the industrial and transport industries, to consider it as a replacement to more costly and polluting fuels.