Fgen Shortlists FSRU Suppliers for Philippine Project

Fgen LNG has selected three preferred bidders for the next stage of a tender for the charter of a floating storage regasification unit (FSRU) for its floating LNG import terminal in the Philippines, its Manila-listed parent company First Gen Corp said on December 21.

After an initial evaluation, the company has selected BW Gas, Dynagas and Hoegh LNG. “The project will allow Fgen LNG to accelerate its ability to introduce LNG to the Philippines as early as Q3 2022, to serve the natural gas requirements of existing and future gas-fired power plants of third parties and Fgen LNG affiliates,” First Gen said. The company had shortlisted BW Gas, GasLog and Hoegh earlier this year, suggesting that GasLog has been replaced by Dynagas.

Japanese utility Tokyo Gas signed an agreement with First Gen in December 2018 to develop an LNG receiving terminal in the country. Tokyo Gas has a 20% stake in Fgen LNG. In September last year, First Gen picked Japan’s JGC Corp for the engineering, procurement and construction work.

First Gen has about 2 GW of generating capacity at four operating gas assets – the 1-GW Santa Rita, the 500-MW San Lorenzo, the 414-MW San Gabriel and the 97-MW Avion plants – all of which depend on gas from the offshore Malampaya field, which is expected to become depleted in a few years. They are all at Batangas city.

Also needing gas supply is the 1.2-GW Ilijan gas-fired power plant, operated by Korea Electric Power Corp but due to be turned over to Philippine conglomerate San Miguel Corporation in July 2022. The facility’s gas sales and purchase agreement is set to expire early that year.