As another LNG shipment reaches offshore terminal, Philippine firm pursuing long-term supply options

Upon receiving a liquefied natural gas (LNG) shipment from China’s CNOOC Gas and Power (CNOOC) at Batangas terminal, Philippine utility First Gen is looking for contracts with longer duration to secure sufficient energy for its gas-fired power plants.

The Philippine player reported receiving a shipment containing around 130,000 cubic meters of LNG on May 23 at the interim offshore LNG terminal within the First Gen Clean Energy Complex (FGCEC) in Batangas City, the Philippines. The LNG originating from the Australia Pacific LNG terminal in Queensland, Australia, was delivered by China’s CNOOC.

The supply contract for what is said to be the fourth LNG shipment contracted by First Gen in the past year was awarded to the Chinese firm in April 2024 to address the growing need for energy and ensure a stable power supply in the country.

Last July, Shell Eastern LNG was picked to deliver the terminal’s first LNG cargo, containing approximately 154,500 cubic meters of natural gas. The BW Batangas floating storage and regasification unit (FSRU) arrived at the terminal shortly before that.

As natural gas is considered a bridge fuel for the transition to a decarbonized energy future, First Gen uses it to generate electricity in the country. The firm owns and operates four natural gas-fired power plants inside the FGCEC with a combined capacity of 2,017 megawatts. 

While First Gen president and COO, Francis Giles Puno, noted that the current short-term arrangements with multiple suppliers would allow the firm to buy additional quantities of LNG, the company disclosed that it was looking for long-term contracts to bring in LNG meant for powering the power plants. This is expected to secure enough energy for the country’s grid in the long run.