FGEN LNG Corporation has executed a five-year time charter party with BW FSRU IV Pte. Ltd., a wholly owned subsidiary of BW Gas Limited, for the charter of a floating storage regasification unit (FSRU) in respect of FGEN LNG’s interim offshore LNG terminal project that will be built at the First Gen Clean Energy Complex in Batangas City.
The project will allow FGEN LNG to accelerate its ability to introduce LNG to the Philippines as early as the third quarter of 2022 to serve the natural gas requirements of existing and future gas-fired power plants of third parties and FGEN LNG affiliates.
An FSRU is a liquefied natural gas carrier or LNGC that is capable of storing LNG and which has an onboard regasification plant capable of returning LNG into a gaseous state and then supplying it directly into the gas network.
In addition to providing storage and regasification services, the BW Paris—the FSRU to be provided— is capable of providing ancillary services such as the reloading of LNG into trucks and smallscale LNG vessels, which can then distribute LNG to nearby industrial areas as well as the rest of the Philippine archipelago.
FGEN LNG believes the 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 industrial and transport industries to consider it as a replacement to more costly and polluting fuels.