Philippines’ First Gen seeks one LNG cargo for FSRU commissioning in September

May 17, 2023 - 8:10 PM
A liquefied natural gas tanker is tugged towards a thermal power station in Futtsu, east of Tokyo, Japan. (Reuters)

Philippine power producer First Gen Corp FGEN.PS will issue a tender probably in the next two weeks for one liquefied natural gas (LNG) cargo for delivery in September, a company official said on Wednesday.

The company expects to commission its floating storage and regasification unit (FSRU) in Batangas province, about 92 km (57 miles) south of capital Manila, in September, and is looking for an initial LNG cargo of 160,000 cubic meters, said chief commercial officer Jonathan Charles Russell.

“We’re in parallel discussions for a medium- to long-term supply (deal), those are ongoing with a number of different entities,” he told reporters on the sidelines of the company’s annual stockholders’ meeting.

“But for now, we’re prioritizing the spot tender, so we can get the project in operation.”

First Gen’s FSRU is one of the seven LNG import terminal projects approved by the government, as the Southeast Asian country switches to imported LNG to ensure uninterrupted operation at several power plants currently running on its Malampaya natural gas.

First Gen owns four power plants with a combined capacity of about 2,000 megawatts and all of them run on supply from the Malampaya gas field.

The field may run dry by 2027 if no further development and new exploration are undertaken around the site, according to the government.

The medium- to long-term LNG supply deal that First Gen aims to clinch may start in 2024 at the earliest, Russell said.

The initial LNG cargo that First Gen is seeking could last for one to three months, “after that (there may be) another tender or we will commence a medium-term contract”, he said.

—Reporting by Enrico Dela Cruz; Editing by Subhranshu Sahu