FGEN seeks long-term deals after Tokyo delivery
It is now in discussions with key players for succeeding LNG cargoes in the medium to long term.
Daily TribuneIt is now in discussions with key players for succeeding LNG cargoes in the medium to long term.
Grip on Russia tightens A view of the Moscow Exchange office in Moscow on 24 March. Russia's main stock exchange halted dollar and euro trades on 13 June after the United States hit Moscow with a new package of sanctions over its military offensive in Ukraine including curbs on the Moscow Exchange, Russia's main stock market and clearing house for foreign currency transactions, a major new financial punishment.
NATALIA KOLESNIKOVA/Agence France-Presse
Lopez-owned First Gen Corp. (FGEN) is now on negotiations for medium to long-term liquefied natural gas (LNG) deliveries after the series of spot LNG supplies.
Tokyo Gas will deliver one LNG cargo of approximately 125,000 cubic meters in July to FGEN’s wholly-owned subsidiary, First Gen Singapore Pte. Ltd. (FGEN Singapore).
The contract marks FGEN’s sixth tender and fifth delivery following contracts signed with Shell Eastern LNG, Trafigura, TotalEnergies Gas and Power Asia Private Ltd., and CNOOC Gas and Power Trading & Marketing Ltd.
In its annual general meeting last 31 May, First Gen president and COO Francis Giles Puno said the energy firm has established a proven track record of buying spot LNG cargo in the international market.
“It is now in discussions with key players for succeeding LNG cargoes in the medium to long-term,” he said.
The company owns a floating storage regasification unit (FSRU)-based import terminal in Batangas, Philippines.
Estimated to cost about $370 million, the “strategically important” infrastructure includes a totally reconfigured multipurpose offshore jetty and the FSRU which First Gen chartered from BW LNG.
Tokyo Gas recently also entered a deal to buy a 20 percent stake in First Gen LNG, which runs the FSRU-based terminal in Batangas.
The LNG terminal “assures the Philippines of its needed natural gas supply for First Gen’s existing plants and potentially additional gas-fired power facilities as needed in the future,” Puno said.
He said First Gen’s current gas-fired power plants comprising Santa Rita, San Lorenzo, San Gabriel and Avion can now run simultaneously on any natural gas with varying specifications to ensure continuity of energy production.
Triple hybrid
“It is worth noting that the Santa Rita and San Lorenzo plants comprising 6 250+ MW units have the added unique technical benefit of being triple-fuel capable (with indigenous, LNG, or liquid fuel, if necessary),” Puno said.
“By addressing the fuel arrangements of our gas-fired plants through LNG, First Gen is now able to recontract its expiring power supply agreements,” he said.
He said San Gabriel’s contract has expired in February 2024 and is now running on a merchant basis, while Santa Rita’s and San Lorenzo’s contracts will expire in 2025 and 2027, respectively.
“LNG will also pave the way for the potential expansion of the 2 by 600-MW Santa Maria project to address the country’s future baseload power needs,” Puno said.
The Tokyo Gas delivery, through an LNG carrier, will be unloaded into the storage tanks of the BW Batangas floating storage and regasification unit currently berthed at the First Gen Clean Energy Complex in Batangas.
As outlined in the Philippine Energy Plan, LNG is crucial for the country’s energy sustainability and security. It plays an important role in boosting natural gas share in the power generation mix to 26 percent by 2040.
LNG offers significant environmental advantages over traditional fossil fuels as it reduces greenhouse gas emissions, combats climate change, improves air quality, and enhances public health — making it the ideal transition fuel to a renewable energy future.
