First Gen Corp. of the Lopez Group has short-listed two engineering, procurement and construction contractors for its planned liquefied natural gas terminal in Batangas.
“The company continues to work on various development activities to be able to advance the project and make a final investment decision. The LNG terminal’s Front End Engineering Design has been completed, and it is now going through a tender for the EPC Contract in which it has shortlisted two tenderers,” the company said in a report to the Philippine Stock Exchange.
First Gen said it would pursue and develop its planned import and re-gasification LNG terminal for completion in 2024.
“Its planned construction and operation is in preparation for the eventual exhaustion of the Malampaya gas field and also to support the development of the Philippine gas industry,” the company said.
“In parallel, the company has also completed the initial phase of planned site development for the LNG terminal site. The project is on track to make a final investment decision by 2019,” it said.
First Gen president Francis Giles Puno earlier said the company’s LNG project was “the most feasible” to date.
“The uniqueness of our project is we have our own power plants so the general approach is to create our own option for our LNG and if there are other options out there that is seem to be more competitive than our project, well and good. At this stage, we believe that our project is the more feasible available today. Unless proven otherwise, our project is the most feasible at this stage,” Puno said.
First Gen plans to put up an LNG terminal to ensure natural gas supply for its power plants in Batangas with a combined capacity of 2,011 megawatts.
“If the Malampaya contract ends by 2024, so it takes about 4 years construction so at the latest we should do something 2020 onwards,” Puno said.
Service Contract No. 38 for the Malampaya gas project in northwest Palawan is due to expire by 2024. Shell Philippines Exploration B.V., Chevron Philippines and state-run Philippine National Oil Co. own SC 38.
Puno also said First Gen had been in discussions with potential partners for its LNG project in Batangas.
“We’d like to be in a position where at least hopefully announce a partnership in the next, hopefully by early next year... we have to make sure we choose the right partners so right now we haven’t just chosen,” he said.