Regional LNG: First Gen awards LNG cargo contract to Tokyo Gas

By Romel S. Gurky

Philippines' First Gen Corporation (FGEN) concluded its international tender for a liquefied natural gas (LNG) cargo on Thursday by awarding a contract to TG Global Trading Co. (Tokyo Gas).

In a statement, FGEN announced that Tokyo Gas will supply one LNG cargo of approximately 125,000 cubic meters, with delivery scheduled for July 2024. The delivery will be made on a Delivered Ex Ship (DES) basis to FGEN’s wholly-owned subsidiary, First Gen Singapore Pte. Ltd. (FGEN Singapore).

The LNG cargo, provided by Tokyo Gas, will be delivered by an LNG carrier and 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 utilized by FGEN’s existing gas-fired power plants, also located in the FGCEC.

Read also: Regional LNG: First Gen seeks long-term LNG supply deals

FGEN has a portfolio of four existing gas-fired power plants with a combined capacity of 2,017 MW, which have been supplied for many years with gas from the Malampaya field, an indigenous offshore gas field. FGEN LNG Corporation has constructed its Interim Offshore LNG Terminal and executed a 5-year Time Charter Party for the charter of the BW Batangas, providing LNG storage and regasification services.

The FGEN LNG Terminal will accelerate the introduction of LNG to the Philippines, serving the natural gas requirements of existing and future gas-fired power plants of third parties and FGEN’s affiliates. FGEN believes the FGEN LNG Terminal will play a critical role in ensuring the energy security of the Luzon Grid and the Philippines.

Editing by Reiner Simanjuntak