First Gen picks Shell for first LNG cargo delivery at Batangas LNG terminal

Following an international tender, First Gen Corporation has selected Shell for the first LNG cargo delivery and completed the berthing of the BW Batangas FSRU at its offshore LNG terminal in the Philippines.

First Gen, in partnership with Tokyo Gas, is developing the Interim Offshore LNG Terminal that will be built at the First Gen Clean Energy Complex in Batangas City, Philippines.

As disclosed, on 7 July, the company concluded its international tender for its first LNG cargo by awarding a contract to Shell Eastern LNG. Under the contract, Shell Eastern LNG will supply one LNG cargo of approximately 154,500 m3 within the required delivery window of 1 August to 30 September 2023.

The cargo will be delivered by an LNG carrier which will facilitate the gassing-up and cooling-down of the BW Batangas FSRU and transfer the LNG cargo into the storage tanks on board the FSRU at Subic Bay. The BW Batangas will then return to the FGEN LNG Terminal in Batangas, to complete commissioning activities.

The LNG to be purchased by FGEN will subsequently be utilized by FGEN’s existing gas-fired power plants in the First Gen Clean Energy Complex in Batangas City.

On 8 July 8, FGEN LNG Corporation (FGEN LNG), a wholly-owned subsidiary of FGEN, achieved another project milestone with the successful mooring and securing of the BW Batangas FSRU at the FGEN LNG Terminal in Batangas. The FSRU is expected to remain in Batangas until it is required to depart for Subic Bay to collect the first LNG cargo.

• First Gen welcomes BW Batangas FSRU in the Philippines
• BW’s FSRU gearing up to serve First Gen’s Batangas LNG terminal

Previously, FGEN LNG announced signing a Memorandum of Understanding (MoU) with Prime Infrastructure Capital, Inc. (Prime Infra) for the proposed lease and operation of the FGEN LNG Terminal. No definitive agreements have been signed; however, FGEN LNG and Prime Infra continue to develop a Gas Aggregator Framework of which the FGEN LNG Terminal is a primary element.

The Gas Aggregator Framework is intended to make it possible to blend currently declining volumes of indigenous Malampaya gas with imported LNG to ensure a least-cost solution for consumers, enhance energy security, and provide a competitive power generation market, while exploration activities leading to the commercial development of new indigenous natural gas fields are undertaken.

These activities are being undertaken in response to the national government’s urgent call for significant investments to ensure national competitiveness.

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