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A subsidiary of First Gen Corp. obtained approval from the Department of Energy (DoE) to build an interim offshore liquefied natural gas (LNG) terminal in the city of Batangas, Batangas province, months after requesting it.
In a release Friday, the Lopez-led power company said its unit FGEN LNG Corp. received permission to build, expand, rehabilitate and modify (PCERM) for the project from the Energy department.
The permit was granted on September 23 after the subsidiary requested it in March.
The project includes the construction work necessary to modify the existing dock into a multipurpose one, as well as the construction of an attached land-based gas receiving facility.
The project represents the initial phase of construction of the terminal, which was previously declared by the Coordinating Council for Energy Investments as an “Energy Project of National Importance” under Executive Order 30.
The DoE issues a PCERM under the Philippines Downstream Natural Gas Regulations authorizing the construction of a downstream natural gas facility, such as the planned terminal.
“We are grateful [Energy] Secretary [Alfonso] Cusi and the DoE Gas Natural Downstream Review and Assessment Committee for the support and guidance they have provided during the assessment process, especially given the difficult circumstances created by the Covid-19 pandemic (coronavirus disease 2019), and for issuing the PCERM, ”said Jonathan Russell, executive vice president and chief commercial officer of First Gen.
The company expects to begin construction late in the third quarter or early in the fourth quarter. 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.
Meanwhile, FGEN LNG is preparing to issue a binding tender for a floating storage and regasification unit (FSRU) once its ongoing non-binding process is completed.
BW Gas Ltd., GasLog LNG Services Ltd. and Hoegh LNG Asia Pte Ltd. have expressed interest in providing the FSRU, which will provide LNG storage and regasification services for the project.
The First Generation unit stated that the project would accelerate the introduction of LNG in the Philippines as early as the third quarter of 2022, “to meet the natural gas requirements of existing and future gas-fired power plants of third parties and affiliates of FGEN LNG. “
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