First Gen awards LNG contract to Tokyo Gas unit

Source: 6/14/2024, Location: Asia

First Gen Corp. of the Lopez Group has awarded a contract to a subsidiary of Tokyo Gas Co. Ltd. for the delivery of the company’s fifth cargo of liquified natural gas (LNG).

In a stock exchange filing, First Gen said TG Global Trading Co. would supply one LNG cargo of approximately 125,000 cubic meters, scheduled for delivery next month, to First Gen Singapore Pte. Ltd.

To be delivered by an LNG carrier, the cargo will be unloaded into the storage tanks of the BW Batangas floating storage and regasification unit (FSRU) currently berthed at the First Gen Clean Energy Complex (FGCEC).

The supply will be utilized by First Gen’s existing gas-fired power plants, which are also located at the FGCEC.

First Gen currently has a portfolio of four gas-fired power plants, boasting a combined capacity of 2,017 megawatts (MW).

For several years, the facilities have been supplied with gas from the Malampaya field, a gas field in offshore Palawan.

First Gen, through subsidiary FGEN LNG Corp., owns and operates the interim offshore terminal project in Batangas City, the construction of which was aimed at ensuring fuel for natural gas plants.

The company has entered into a five-year agreement for the charter of the BW Batangas, which will provide FSRU services as part of the project.

The LNG terminal, First Gen said, would play an important role in ensuring the stability of the Luzon grid and energy security in the Philippines.

The company received its first LNG cargo delivery at Subic in August 2023 and completed subsequent deliveries of LNG cargoes in its Batangas complex in December 2023 as well as in February and May 2024.

Among the largest purchasers of LNG in the world, Tokyo Gas recently executed a deal with First Gen LNG Holdings Corp. to buy out 20 percent of FGEN LNG.

First Gen earlier said the transaction is expected to help the company improve its efficiencies, particularly in the procurement of gas.

This year, the power producer has earmarked $1.27 billion, or about P74.3 billion, for capital expenditures to beef up its renewable energy (RE) and natural gas portfolio.

The biggest component of the budget, or $670 million, will support the operations of RE subsidiary Energy Development Corp.

Meanwhile, about $526 million was earmarked for the acquisition of the 165-MW Casecnan hydroelectric power plant and the rest was allocated to finish other natural gas projects.

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