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Mid-November Presentation for 3 Preferred Providers
LOPEZ-LED First Gen Corp. has issued invitations to tender to its three preferred suppliers for a natural gas transfer vessel to be used at its short-term import terminal in Batangas.
The energy company is poised to bring the country’s first liquefied natural gas (LNG) imports through its offshore terminal project with Tokyo Gas Co., Ltd.
It told the stock exchange on Wednesday that it sent out binding tender invitations to three selected contractors for a floating storage and regasification unit (FSRU).
The bidders are BW Gas Ltd. of global gas transportation company BW Group, New York-listed GasLog LNG Services Ltd. and Hoegh LNG Asia Pte Ltd., owned by Norwegian LNG transportation provider Hoegh LNG Holdings.
Their offers are due in “mid-November,” First Gen commercial director Jonathan C. Russell told the publication. There was also no minimum bid price required, he said.
An FSRU is capable of storing LNG and returning it to its gaseous state. Typically, it can store 125,000-170,000 cubic meters of natural gas.
Earlier this month, First Gen said its subsidiary FGEN LNG Corp. chose the Philippine unit of Australia-based McConnell Dowell Group to build its makeshift gas terminal. It previously hired the engineering firm to build its liquid fuel dock, which will be converted into a multipurpose structure. The company will also build an attached onshore gas receiving facility as part of the project.
The Department of Energy has given the green light to construction of the $ 300 million project, which was designated as an energy project of national importance. This meant that the project can enjoy faster permits from government agencies.
First Gen plans to begin the construction phase in the fourth quarter as soon as it can provide the design, as well as improved safety and work protocols and procedures to minimize the impact of the ongoing coronavirus pandemic on construction personnel and the community. hostess of the power company. .
The joint venture project grew out of the joint development agreement between First Gen and Tokyo Gas two years ago.
On October 7, the two signed a joint cooperation agreement to pursue the design, development, testing, commissioning, construction, ownership and operations and maintenance of the gas terminal project. This gives the Japanese firm a 20% stake in it.
Once Tokyo Gas can make a final investment decision, it will enter into a final agreement with the local company.
The Philippines is currently studying LNG imports as an alternative to its depleted natural gas resources in Malampaya, northwest of Palawan. Reserves in the gas field are expected to dry out completely by 2027, according to the Department of Energy.
First Gen previously said it could bring in imported LNG starting in the third quarter of 2022.
Shares of First Gen rose 0.77% to close at P26.30 each on Wednesday. – Adam J. Ang
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