López firm obtains permission to build LNG terminal in Batangas

Liquefied natural gas may be introduced to the Philippine market as early as the third quarter of 2022, as First Gen Corp. and its partners have obtained a permit from the Department of Energy to build an LNG terminal in Batangas.

First Gen said in a statement that its subsidiary FGEN LNG Corp. received a permit on Friday to build, expand, rehabilitate and modify a project they have been preparing at the First Gen Clean Energy Complex in the city of Batangas.

The permit dated September 23 was issued almost nine months since FGEN LNG applied for it on March 4.

The project involves the modification of an existing dock, as well as the construction of a gas reception facility on land, which the company led by López is developing with Tokyo Gas Corp.

Jonathan C. Russell, First Gen Executive Vice President and Chief Commercial Officer, said that once the FGEN LNG preparations are complete, construction could begin in late October or early in the fourth quarter of this year.

Such preparations include the design and implementation of improved work and safety protocols and procedures necessary to minimize the impact of COVID-19 on construction personnel and the local community.

Furthermore, FGEN LNG is preparing to submit tenders for a floating storage and regasification unit (FSRU) once its ongoing non-binding process is complete.

Last July, company officials said First Gen had earmarked capital expenditures of $ 60 million this year and $ 110 million in 2021 for the FSRU, which was a temporary floating gas facility.

“The [FSRU)] will allow FGEN LNG to accelerate its ability to introduce LNG in the Philippines already (Q3 2022)… ”said Russel.

First Gen expects its project to play a critical role in ensuring energy security in the Philippines, especially in the Luzon grid.

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