First Gen Corp. of the Lopez Group awarded the latest liquefied natural gas (LNG) cargo to Shell Eastern LNG for delivery next month.
The cargo will be used by First Gen’s gas-fired power plants in the First Gen Clean Energy Complex in Batangas province.
“We just awarded one the other day to Shell….But we still always buy spot. For me, I think at some point, the country really wants to get the best benefit of LNG. Long-term contracting is better because you can go to the market, to the LNG suppliers and say, this is my amount, it’s big, it can be over a certain term, a much longer term,” First Gen chairman Federico Lopez said at the sidelines of the Net Zero Conference 2024 in Makati City.
“Right now, we’re just all buying on spot, which can be done, but you know, it’s not the most efficient cost for the country. The country can do better if we all work together. It’s gonna be better for the country,” he said.
First Gen previously issued an invitation to bid for a single LNG cargo through wholly-owned subsidiary First Gen Singapore Pte. Ltd.
This is First Gen’s fifth cargo delivery and is Shell’s second delivery to First Gen, with the delivery window slated on Oct. 14 to Oct. 18, 2024 for 154,500 cubic meters of LNG.
FGEN has a portfolio of four existing gas-fired power plants with a combined capacity of 2,017 megawatts that have been supplied for many years with gas from the Malampaya field, an indigenous offshore gas field.
Other First Gen’s previous suppliers are CNOOC Gas and Power Trading & Marketing Ltd., Trafigura, TotalEnergies Gas and Power Asia Private Ltd.
FGEN LNG owns an interim offshore LNG terminal and executed a five-year time charter party for the charter of the BW Batangas, which will provide LNG storage and regasification services.
