The interim offshore LNG terminal project within the First Gen Energy ComplexFirst Gen on July 7, 2023 concluded its international tender for its first liquefied natural gas (LNG) cargo by awarding a contract to Shell Eastern Trading (Pte.) Ltd., trading as Shell Eastern LNG.

Shell Eastern LNG will supply one LNG cargo of approximately 154,500 cubic meters (subject to an operational tolerance of +/- 3%) within the required delivery window of Aug. 1, 2023 to Sept. 30, 2023, on a delivered exship basis to First Gen’s wholly-owned subsidiary, First Gen Singapore Pte. Ltd.

The LNG cargo to be provided by Shell Eastern LNG will be delivered by an LNG carrier which will facilitate the gassing up and cooling down of the BW Batangas floating storage regasification unit (FSRU) and transfer the LNG cargo into the storage tanks on board the BW Batangas FSRU at Subic Bay.

The BW Batangas will then return to the FGEN LNG terminal in Batangas to complete commissioning activities. The LNG to be purchased by First Gen will subsequently be utilized by First Gen’s existing gas-fired power plants in the First Gen Clean Energy Complex in Batangas City.

On July 8, 2023, FGEN LNG Corporation, a wholly-owned subsidiary of First Gen, achieved a significant project milestone with the successful mooring and securing of the aforementioned BW Batangas FSRU at the FGEN LNG terminal in Batangas. BW Batangas is expected to remain in Batangas until it is required to depart for Subic Bay to collect the first LNG cargo that will be delivered by Shell Eastern LNG.

First Gen has a portfolio of four existing gas-fired power plants with a combined capacity of 2,017 megawatts that have been supplied for many years with gas from the Malampaya field. FGEN LNG has constructed its project and executed a five-year time charter party for the charter of the BW Batangas, which will provide LNG storage and regasification services as part of the project.

The FGEN LNG terminal will accelerate the ability to introduce LNG to the Philippines, to serve the natural gas requirements of existing and future gasfired power plants of third parties and First Gen’s affiliates. First Gen believes the FGEN LNG terminal will play a critical role in ensuring the energy security of the Luzon grid and the Philippines.

FGEN LNG previously announced the signing of a memorandum of understanding with Prime Infrastructure Capital Inc. for the proposed lease and operation of the FGEN LNG terminal being developed by FGEN LNG. No definitive agreements have been signed but FGEN LNG and Prime Infra continue to develop a gas aggregator framework of which the FGEN LNG terminal is a primary element.

The gas aggregator framework is intended to make it possible to blend currently declining volumes of indigenous Malampaya gas with imported LNG to ensure a least-cost solution for consumers, enhance energy security and provide a competitive power generation market, while exploration activities leading to the commercial development of new indigenous natural gas fields are undertaken. All of these activities are in response to the national government’s urgent call for significant investments to ensure national competitiveness.