First Gen cleared to operate Batangas LNG terminal for 25 years

FGEN LNG, a wholly-owned subsidiary of Philippine utility First Gen, has received the permit to operate and maintain (POM) its interim offshore liquefied natural gas (LNG) terminal located in the First Gen Clean Energy Complex in Batangas City, the Philippines.

The country’s Department of Energy (DOE) issued the authorization for the operation of the project for FGEN LNG’s own use for a period of 25 years. The project’s initial phase includes converting the existing jetty into a multi-purpose jetty and constructing an adjunct onshore gas receiving facility. 

“We are thankful to Secretary Raphael P. M. Lotilla and the Downstream Natural Gas Review and Evaluation Committee for the support and guidance provided throughout this process, and for issuing the POM,” said First Gen President, Giles B. Puno. “Last year, the Project has enabled introduction of LNG to supplement Malampaya to ensure energy security especially during the past summer.” 

FGEN LNG built an interim offshore LNG terminal in partnership with Tokyo Gas and signed a five-year time charter party (TCP) agreement for the floating storage and regasification unit (FSRU) BW Batangas, which arrived on site in June 2023.

The interim terminal aims to speed up the introduction of natural gas to the Philippines, especially since predictions suggest the country’s Malampaya field – which withstood a typhoon without interruption in supply in the summer of 2024 – could be depleted by 2027. 

The terminal is, thus, considered a key factor in ensuring the country’s energy security as it fuels First Gen’s four natural gas-fired power plants with a combined capacity of 2,017 megawatts. Furthermore, it was declared an energy project of national significance by the Energy Investment Coordination Council through the DOE.

The tender for the terminal’s first LNG cargo was concluded in July 2023. Less than a year later, the Philippine player was getting ready to welcome its fifth LNG shipment, from Tokyo Gas, after CNOOC supplied the fourth one.