FGEN LNG Corporation (FGEN LNG), a wholly-owned subsidiary of Philippine Energy company, First Gen Corporation (First Gen), has learned of the approval of its application for a Notice to Proceed (NTP) from the Department of Energy (DOE) as required by the Philippine Downstream Natural Gas Regulation (PDNGR). As per First Gen, they are awaiting the formal notice from the DOE. The application was for the construction of the FGEN Batangas LNG Terminal Project to be located in the First Gen Clean Energy Complex in Batangas City.
Japan-based utility company, Tokyo Gas, plans to hold a 20% stake in the project that is expected to commence operations in 2023. The project aims to construct and operate the first LNG receiving terminal in the Philippines. The FGEN Batangas LNG Terminal Project is intended to serve the natural gas requirements of existing and future gas-fired power plants of third parties and FGEN LNG affiliates. The new terminal will have an annual capacity of 5.26 million tons and investment cost is estimated to be USD 10 billion.
First Gen decided to build the gas import terminal due to the projected depletion of local supplies by 2024. The Philippine government has thus far approved 2 LNG hubs projects. The partnership with Tokyo Gas and First Gen is the largest in capacity size.
First Gen is one of the biggest independent power producers in the country and the leading gas power generation company in the Philippines with approximately 2,000 MW in operating gas assets composed of four gas-fired power plants – the 1,000 MW Santa Rita Power Plant, the 500 MW San Lorenzo Power Plant, the 414 MW San Gabriel Power Plant and the 97 MW Avion Power Plant, all of which currently operate on Malampaya gas supply.
(Sources: First Gen; The Japan Times)