First Gen Corp. Receives “Positive Feedback” on Search for LNG Supply

Fossil fuel energy company First Gen Corp. (FGen) announced garnering “positive feedback” on its search for liquefied natural gas (LNG) for the company’s future developments. According to the FGen, the company’s LNG terminal aims to be commercially available in the Philippines by the fourth quarter of 2022.

“First Gen is actually currently running a supply tender to find the best supplier for the initial term supply for delivery in the period 2023 to 2027. In parallel, we’re in discussions with several LNG suppliers to seek what they call master sale-purchase agreement, which allows the spot purchase of LNG in addition to the term supply,” FGen’s executive vice president and chief commercial officer John Russel says.

According to Russel, the LNG terminal would play an important role in maintaining the country’s supply of natural gas as indigenous sources have been running out. Russel also says FGen will keep on utilizing its liquid fuels for its gas plants as current gas restrictions from the Malampaya gas field continues to persist. The Malampaya gas field has been experiencing gas-restricted output since the previous year, with its gas field possibly being depleted by the year 2027.

“Securing the LNG supply alongside the completion of the LNG terminal will be critical to ensuring grid security and to support the development of renewables in the country. Let me say, the response of the market so far, although we yet haven’t selected suppliers, is very, very positive,” Russel adds.

“Depending on Malampaya’s performance this year, we anticipate having a requirement of at least four million barrels of condensate. And for reference, so far this year, we’ve already imported one million barrels of condensate,” the vice president and chief commercial adds. He also says FGen is now working closely with the Manila Electric Company in helping guarantee a smoother transition from fuel source to Malampaya and LNG.

The creation of FGen’s LNG terminal will allow the company to import natural gas from various sources globally, aiming to provide its consumers with cleaner and more reliable electricity that could replace coal-powered energy once Malampaya’s indigenous supply runs out.

Source: BusinessMirror