First Gen asks govt to join LNG project

By Lenie Lectura – January 8, 2018
from Business Mirror

FIRST Gen Corp. (First Gen) said over the weekend it has submitted a proposal requesting the Philippine National Oil Co. (PNOC) to participate in the firm’s liquefied natural gas (LNG) project.

Last week the PNOC said it received a total of seven proposals from foreign and local firms to participate in the government’s LNG project. The PNOC cited First Gen as one of the companies that submitted proposals.

Other proposals received by the PNOC came from Energy World Corp., PT. Jaya Samudra Karunia and PT PGN LNG Indonesia/PT Bosowa Corporindo with their local partner MOF Corp., Kepco, Lloyds Energy and the China National Offshore Oil Co.

The Department of Energy has tasked PNOC to develop an integrated LNG hub with storage, liquefaction, regasification and distribution facility, as well as a reserve initial power-plant capacity of 200 megawatts (MW).

While First Gen admitted to having submitted a proposal to the PNOC, the proposal, however, was for the “PNOC to participate in First Gen’s onshore storage and regasification terminal within the First Gen Clean Energy Complex in Batangas City,” which houses the 1,000-MW Santa Rita, 500-MW San Lorenzo, 414-MW San Gabriel and 97-MW Avion gas plants.

It reiterated that First Gen is open to the participation of both local and foreign partners in its LNG terminal project and continues to hold exploratory discussions with a number of entities.

The $1-billion LNG terminal will have a capacity of 5 million tons per annum to support the demands of First Gen’s existing gas-fired power plants and other potential third-party users.

“First Gen has started development work for the LNG terminal as early as 2012 and is well positioned to be ready for operations prior to the termination of the Gas Sale and Purchase Agreements,” it said, adding that it will make an announcement when it reaches a definitive agreement with any partner.

Advertisements