First Gen awards LNG supply contract to Tokyo Gas
Manila-listed First Gen Corporation (FGEN) has awarded a contract to TG Global Trading, a subsidiary of Japan’s Tokyo Gas, for the supply of one LNG cargo in July, the company announced on 13 June.
TG Global will supply an LNG cargo of approximately 125,000 m³ on a delivered ex ship (DES) basis to FGEN’s wholly-owned subsidiary, First Gen Singapore. The LNG cargo will be unloaded into the storage tanks of the BW Batangas floating storage and regasification unit (FSRU) currently berthed at the First Gen Clean Energy Complex (FGCEC) in Batangas City.
The LNG will be utilised by FGEN’s existing gas-fired power plants, which are also located in the FGCEC.
FGEN operates a portfolio of four gas-fired power plants with a combined capacity of 2.01 GW. These plants have relied on the Malampaya field for many years. The company believes the LNG project will play a critical role in ensuring the energy security of the Luzon grid and the Philippines, particularly as the indigenous Malampaya natural gas resource is expected to decline in the next few years.
FGEN LNG, a unit of FGEN, has executed a five-year time charter party for the BW Batangas, which will provide LNG storage and regasification services for the project. BW Batagangas was earlier called BW Paris. FGEN LNG and BW LNG executed a five-year deal in 2021 for the charter of BW Paris.
The terminal got its inaugural LNG cargo last year. Shell Eastern LNG supplied one LNG cargo of approximately 154,500 m3 to First Gen Singapore.
Recently, Tokyo Gas said it will acquire a 20% stake in FGEN LNG.