FGEN LNG Corp., a wholly-owned subsidiary of First Gen Corp., said Tuesday it expects to complete the construction of an interim offshore liquefied natural gas receiving terminal by the end of the first quarter next year.
FGEN said in a statement the interim LNG terminal project would accelerate its ability to introduce LNG to the Philippines and serve the natural gas requirements of current and future gas-fired power plants of third parties and FGEN LNG affiliates.
“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 natural gas resource continues to decline,” the company said.
FGEN LNG is investing around P13.28 billion ($260 million) on the LNG facility, which has a capacity of 5.26 million tons a year, according to government data.
The company said the availability of LNG would assist in efforts to help decarbonize the Philippines by providing a clean bridge fuel to increase the energy security of the Philippines and help support the introduction of intermittent renewables.
The company will also deploy a floating storage re-gasification unit to the First Gen Clean Energy Complex in Batangas City by the second or third quarter of 2023.
FGEN LNG and BW LNG, a leading developer, owner and operator of floating gas infrastructure, will rename the FSRU to BW Batangas from BW Paris.
“This change is intended to acknowledge the historical, current and future support given by the province of Batangas and by our hosts Batangas City and to underscore our commitment to supporting the energy security of the Philippines. It is also intended as a tribute to all of our colleagues from Batangas in recognition of all of their dedication and hard work,” said FGen executive vice president and chief commercial officer Jonathan Russell.