MANILA – The interim offshore liquefied natural gas (LNG) terminal of First Gen Corp. in Batangas will supplement the gas supply in the country as the Malampaya gas field is depleting more quickly than expected.
During the annual stockholders’ meeting of First Gen Wednesday, its chief commercial officer Jonathan Russell said the LNG terminal will have a capacity of 500 million standard cubic feet gas per day, higher than Malampaya’s daily production of 400 million standard cubic feet.
“(I)t can serve to supplement and even replace Malampaya’s supply,” Russell said.
He said the interim offshore LNG terminal will be ready to serve existing and new gas fired plants.
“We are looking at expanding (our) potential customer base by seeking new ways to deliver gas to customers using small scale LNG by road and by sea instead of traditional pipelines,”’ he added.
First Gen president Francis Giles Puno said the company is on track to complete the interim offshore LNG terminal project by 2022, with commercial operation eyed to start in the third quarter next year.
“For the year, we were able to make advancements in our LNG project. (The) DOE (Department of Energy) granted us the permit to construct. We also awarded the turnkey construction contract to McConnell Dowell of Australia. We awarded to BW Gas Ltd of Norway the chartering contract to provide us with the floating storage and regasifying liquefied natural gas vessel,” he said.
Puno also lauded the decision of the DOE to cease processing applications for greenfield coal-fired power projects as this would mean more opportunities for clean and renewable sources in the country’s energy mix.
He added LNG will pave the way for decarbonizing the country’s entire energy system and move away from coal dependence.
Meanwhile, First Gen chief finance officer Emmanuel Antonio Singson said the company is expected to spend USD500 million in capital expenditure, with USD120 million to be spent on the interim offshore LNG terminal project in Batangas. (PNA)