First Gen disclosed Monday it executed a 5-year time charter party with BW FSRU and the FSRU that will be provided will have LNG storage capacity of 162,400 cubic meters and a nominal peak gas capacity of 500 million cubic feet per day and 750 MMscfd, respectively.
The BW Group is a leading global maritime company involved in shipping, floating infrastructure, deepwater oil & gas production, and new sustainable technologies.
An FSRU is a liquefied natural gas carrier (LNGC) that is capable of storing LNG and which has an onboard regasification plant capable of returning LNG into a gaseous state and then supplying it directly into the gas network.
A typical FSRU has a storage capacity of between 125,000 m3 and 170,000 m3.
The nominal send out capacity of the FSRU (BW Paris) is 25 percent more than the production capability of the Malampaya gas project in northwest Palawan, which at its peak produced a maximum gas volume of about 400 MMscfd, and which is now declining. said.
In addition to providing storage and regasification services, BW Paris is capable of providing ancillary services such as the reloading of LNG into trucks and small scale LNG vessels, which can then distribute LNG to nearby industrial areas as well as the rest of the Philippine archipelago.
Fgen said the LNG terminal would allow the company to accelerate its goal of launching LNG in the Philippines as early as third quarter of 2022. This will serve the natural gas requirements of existing and future gas-fired power plants of third parties and FGEN LNG affiliates.
The project is seen to play a critical role in ensuring the energy security of the Luzon grid 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,” it said.