Wholly-owned subsidiary FGEN LNG Corp. received from the Department of Energy a permit to build an interim offshore LNG Terminal at the First Gen clean energy complex in Batangas City.
Construction of the project is targeted to start by the end of the third quarter or early fourth quarter this year.
The project will allow FGEN LNG to accelerate its ability to introduce LNG to the Philippines as early as third quarter of 2022, to serve the natural gas requirements of existing and future gas-fired power plants of third parties and FGEN LNG affiliates.
BW Gas Limited, GasLog LNG Services Ltd., and Hoegh LNG Asia Pte Ltd., have expressed interest in providing the floating storage and regassification unit that will provide LNG storage and regasification services to the project once constructed.
FGEN LNG believes the project will play a critical role in ensuring the energy security of the Luzon grid and the Philippines, particularly as the indigenous Malampaya gas resource is expected to be less reliable in producing and providing sufficient fuel supply for the country’s existing gas-fired power plants, and even less so for additional gas-fired power plants.
The entry of LNG will encourage new power plant developments, as well as industrial and transport industries, to consider it as a replacement to more costly and polluting fuels.