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First Gen unit asks 3 firms to bid for floating LNG terminal

FGEN LNG Corp., a wholly-owned subsidiary of First Gen Corp., said Wednesday it asked three companies to join the bidding for the charter of a floating storage re-gasification unit of an interim offshore liquefied natural gas terminal in Batangas City.

FGEN LNG issued the binding invitation to tender to BW Gas Limited, GasLog LNG Services Ltd. and Hoegh LNG Asia Pte. Ltd. after it completed a non-binding pre-qualification process.

An FSRU is an LNG carrier capable of storing LNG and which has an onboard regasification plant capable of returning LNG into a gaseous state and then supplying it directly into the gas network.

A typical FSRU has a storage capacity of between 125,000 cubic meters and 170,000 cubic meters.

“BW Gas Limited, GasLog LNG Services Ltd. and Hoegh LNG Asia Pte Ltd. are all very experienced players in the international LNG industry, and we are delighted that they have expressed such keen interest in providing a suitable FSRU for the benefit of the project and the Philippines,” Jonathan Russell, First Gen executive vice president and chief commercial officer said in a statement to the stock exchange.

“We expect that it will be a difficult choice, but the BITT process is designed to enable FGEN LNG to select the FSRU supplier and FSRU best suited to meet the needs of the project in order to deliver a safe, reliable and competitive supply of LNG to our customers,” Russell said.

Russel said the bids were due to be submitted by November and there was no minimum bid price.

“It is a competitive tendering process which will take into account contractual, legal and technical factors,” he said.

This followed FGEN LNG’s receipt of a permit to construct, expand, rehabilitate and modify from the Department of Energy.

FGEN LNG’s terminal project will allow the company to accelerate its ability to introduce LNG to the Philippines as early as the third quarter of 2022 and serve the natural gas requirements of operating and future gas-fired power plants, third parties and FGEN LNG affiliates.

Topics: FGEN LNG Corp. , First Gen Corp. , liquefied natural gas , Batangas City
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