The Department of Energy (DOE) granted a permit to FGEN LNG Corp. (FGEN LNG), a wholly-owned subsidiary of First Gen Corp., for its interim offshore liquefied natural gas terminal at the First Gen Clean Energy Complex in Batangas City.
The permit to operate and maintain authorizes the operation of the project for its own use and is valid for a period of 25 years.
The project consists of a multi-purpose jetty and an onshore gas receiving facility representing the initial phase of the FGEN LNG terminal that was previously declared by the Energy Investment Coordination Council through the DOE as an “energy project of national significance” under Executive Order No. 30.
“We are thankful to Secretary Raphael Lotilla and the Downstream Natural Gas Review and Evaluation Committee for the support and guidance provided throughout this process, and for issuing the POM,” said First Gen president and chief operating officer Francis Giles Puno in a disclosure to the Philippine Stock Exchange Monday.
FGEN LNG owns and operates the IOT project in partnership with Tokyo Gas of Japan.
First Gen said that in line with the thrust of the DOE’s Philippine Energy Plan 2023-2050, the project will support the introduction of more natural gas plant generation that will serve as the bridge fuel and offer flexible power generation to support the introduction of more intermittent RE in the country.
The company earlier disclosed that its LNG terminal generated commissioning revenues from its pre-commercial operations and terminal fees. FGEN LNG completed the commissioning activities as of end September 2024.
FGEN LNG generated revenues amounting to P3,567.3 billion mainly from terminal fees charged to the natural gas power plants for the transport, storage and regasification of LNG.
LNG’s income contribution to First Gen increased by $2.9 million to $1.0 million in the first nine months of 2024, a reversal from a net loss of $1.9 million in the same period last year, mainly due to the terminal fees billed to the natural gas plants and towage fees
First Gen is one of the biggest independent power producers in the country and the leading gas power generation company in the Philippines with about 2,000 megawatts in operating gas assets out of its total 3,668 MW installed capacity.
Its energy portfolio comprises of clean and indigenous fuels such as natural gas, geothermal energy from steam, hydroelectric, wind and solar power.