The FSRU project will be built in the First Gen Clean Energy Complex (FGCEC). Timely start-up is crucial to ensure the continued operations of the Philippines’ gas-fired power units. The imported regasified LNG will substitute depleting domestic gas supply for several the nearby power stations, notably Santa Rita (1,000 MW), San Lorenzo (500 MW), San Gabriel (414 MW) and Avion (97 MW).
All four power stations currently run on gas from the Malampaya field northwest Palawan, operated by a Shell-led consortium. Supply contracts with the Philippine government for domestically produced gas will expire by 2024.
First LNG cargo to land in Q3-2022
First Gen said in a statement to the Philippines Stock Exchange that it had submitted an application to the Department of Energy to start construction in less than eight week’s time. Starting from early May, the FSRU will be built together with an adjunct onshore gas receiving facility. First Gen underlined it seeks to fast-track construction start “in order to be able to receive LNG as early as third quarter of 2022.”
Importing LNG is “advantageous for us,” Francis Giles B. Puno, First Gen President and COO said, noting that prices for spot LNG cargoes are currently “quite attractive and even cheaper than gas from the domestic Malampaya field.”
Once operational the FRSU is meant to cover the serve the natural gas requirements of existing and future gas-fired power plants of third parties and FGEN LNG affiliates,” First Gen said, adding these gas imports will “bring the country closer to its goals of energy security, expanded energy access and low-carbon future as stated in the Philippine Energy Plan 2017-2040.”
FirstGen is jointly developing the FSRU at Bantangas with Tokyo Gas, which holds a 20% stake in the project. EPC works for the floating gas import terminal will be handled by Japan’s JGC Corp, allowing for LNG imports delivered by large- and small-scale vessels.
To attract further investors, FirstGen is prepared to decrease its stake in the project from currently 80% to about 51%. Yet before signing up new partners, FirstGen and Tokyo Gas wanted to break ground on the project.