First Gen eyes small-scale LNG development

FGEN LNG, a unit of First Gen Corporation, is looking into the potential small-scale LNG development in the First Philippine Industrial Park (FPIP).

FPIP, which is located in the CALABARZON (Cavite-Laguna Batangas-Rizal-Quezon) industrial region south of Manila, could receive LNG via trucks and specialized insulated containers supplied from FGEN LNG’s Interim Offshore LNG terminal. The terminal will be located at the First Gen Clean Energy Complex (FGCEC) in Batangas City, approximately 50 kilometers away from FPIP.

The project will allow FGEN LNG to be able to bring in a Floating Storage & Regasification Unit (FSRU) on an interim basis. This will accelerate FGEN LNG’s ability to introduce LNG to the Philippines as early as the third quarter of 2022. The project will serve the natural gas requirements of existing and future gas-fired power plants of third parties and FGEN LNG affiliates, such as FPIP.

Provision has been made at the FGCEC to install an LNG truck loading facility to load LNG into ISO containers transported by truck.

The use of ssLNG technology can enable the delivery and use as natural gas in locations in which developing a traditional gas pipeline network is not feasible. As such, ssLNG may provide a considerable opportunity for the Philippines because of its geographical conditions, with many outlying locations and islands in which electric power is provided by thermal power generation using diesel and other petroleum products.

According to the International Gas Union World LNG Report – 2020 edition, interest in ssLNG around the world is growing. LNG transportation to satellite LNG regasification operations for industrial facilities and remote communities is expected to increase due to economic development in areas that cannot be served by natural gas pipeline supplies.

Initiatives to deliver a flexible supply of LNG to isolated areas can reduce emissions, using LNG as a substitute to other, less clean, fossil fuels increase and generate more demand for LNG.

FGEN LNG will focus on developing small-scale LNG solutions in two phases. In the first phase, FGEN LNG and FPIP will assess introducing small-scale LNG to FPIP’s industrial park and shall identify a site inside the industrial park that can accommodate a satellite LNG receiving, storage, and regasification facility. In the second phase, FGEN LNG will examine bringing LNG to other islands in the Philippines using small-scale LNG carriers.