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Sunday, December 10, 2023

First Gen awards contract for LNG cargo to Trafigura

First Gen Corp. said Friday it awarded a contract to Trafigura Pte Ltd (Trafigura), a global supplier of commodities, for the delivery of liquefied natural gas (LNG) cargo, following the conclusion of its international tender.

First Gen said in a disclosure to the Philippine Stock Exchange Trafigura would supply LNG cargo of about 154,500 cubic meters within the required delivery window of Nov. 25 to Dec. 25, 2023 to FGEN’s wholly-owned subsidiary First Gen Singapore Pte. Ltd.

The cargo will be delivered by an LNG carrier which would be unloaded into the storage tanks of the BW Batangas FSRU that is berthed at the First Gen Clean Energy Complex (FGCEC) in Batangas City. 

First Gen announced in October that it was seeking bids for the supply of LNG.

First Gen said it would use the cargo delivery for four gas-fired power plants with a combined capacity of 2,017 megawatts in FGCEC, which were supplied for many years with gas from the Malampaya gas field in northwest Palawan.

First Gen through FGEN LNG Corp. constructed an interim offshore LNG terminal and executed a 5-year time charter party for BW Batangas, which would provide LNG storage and regasification services as part of the project.

First Gen expects the LNG terminal to be fully operational within the year.

“The FGEN LNG terminal will accelerate the ability to introduce LNG to the Philippines to serve the natural gas requirements of existing and future gas-fired power plants of third parties and FGEN’s affiliates,” the company said.

It said the terminal will play a critical role in ensuring the energy security of the Luzon grid and the Philippines.

First Gen’s power generation portfolio utilizes clean and indigenous fuels such as natural gas, geothermal energy from steam, hydro, wind and solar. The company has 3,482 MW of installed capacity in its portfolio, which accounts for 19 percent of the country’s gross generation.

First Gen is a subsidiary of First Philippine Holdings Corp., one of the most established conglomerates in the country.

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