Philippines power company First Gen has named its three preferred shipowner providers for a planned floating storage and regasification unit.
The outfit said BW Gas, GasLog and Hoegh LNG were chosen to compete in a tender selection process for the chartering of an FSRU.
The company said the regasification unit will be chartered by its First Gen LNG (FGEN LNG) arm for its interim offshore LNG terminal project that it is developing at the First Gen Clean Energy Complex in Batangas City, Philippines.
BW and Hoegh LNG are existing operators of FSRUs, while GasLog has been pursuing opportunities in floating regasification for several years.
The project will see an existing liquid-fuel jetty modified so that it can made available for multiple uses. In addition, an onshore gas receiving facility will be built to supply end users.
The FSRU will be berthed at the jetty to store and regasify LNG for use when required, the company said.
The power company said FGEN LNG submitted an application for the project to the Department of Energy on 4 March.
Accelerating LNG provision
“The project will allow FGEN LNG to accelerate its ability to introduce LNG to the Philippines as early as Q3 of 2022 and is intended to serve the natural gas requirements of existing and future gas-fired power plants of third parties and FGEN LNG affiliates,” First Gen said.
The company pointed out that the country’s existing Malampaya gas reserves are expected to be less reliable in producing and providing sufficient fuel supply for the country’s gas-fired power plants.
“The entry of LNG to supplement and eventually replace Malampaya gas 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,” First Gen said.
“FGEN LNG believes the project will play a critical role in ensuring the energy security of the Luzon Grid and the Philippines.”
First Gen is not the only company planning to use an FSRU to bring gas into the Philippines.
Last year, Excelerate Energy said it had been given permission by the Philippines Department of Energy to go ahead with plans to develop, design, permit, construct, finance and operate an FSRU in the Bay of Batangas under the project name Luzon LNG.
