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First Gen Corp. received the go-ahead from the Department of Energy (DoE) to build its temporary offshore liquefied natural gas (LNG) terminal in the city of Batangas.
In a statement Friday, First Gen said its wholly owned subsidiary FGEN LNG Corp. received permission to build, expand, rehabilitate and modify its LNG terminal on September 23.
The company applied for the regulatory permit in March, which consists of modifying its existing jetty and building a gas receiving facility on land at its clean energy complex in Batangas city.
FGEN LNG aims to begin construction by the end of the third quarter or early fourth quarter.
“We thank the Secretary (of Energy) (Alfonso G.) Cusi, and the Gas Natural Downstream Review and Evaluation Committee of the DoE, for the support and guidance they have given us during the evaluation process,… and for issuing the ( permission), ”said First Generation Executive Vice President and Chief Commercial Officer Jonathan C. Russell in the statement.
With the development, the company aims to introduce LNG in the Philippines by the third quarter of 2022.
FGEN LNG is also inviting providers of floating storage and regasification units, or the storage ships that allow energy to be transferred from the ocean, to support its Batangas LNG terminal project. He said three bidders have so far expressed interest in the project.
“FGEN LNG believes that the project will play a critical role in ensuring the energy security of the Luzon and Philippine grid, especially as Malampaya’s indigenous gas resource is expected to be less reliable…” he said.
“The entry of LNG will encourage the development of new power plants, as well as the industrial and transportation industries, to consider it as a replacement for more expensive and polluting fuels,” he added.
First Gen reported net attributable income of $ 132.91 million in the first half of 2020, down from 20% a year ago, due to a decrease in electricity sales in the second quarter.
Shares of the listed company fell 35 cents or 1.46% to P23.60 each on Friday. – Denise A. Valdez
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