FGEN LNG Corporation, a unit of First Gen Corporation, has entered into a ten-year contract with Denmark marine operator Svitzer for towage and vessel support services to its LNG terminal in Batangas City.
The terminal is to be built at the First Gen Clean Energy Complex in Batangas City, Philippines.
Svitzer, a part of the Maersk Group, is to provide four newbuild 75-tonnes bollard pull tug vessels, which will serve the operations of FGEN LNG’s floating storage regasification unit (FSRU) and LNG carriers.
This comes a couple of months after FGEN LNG awarded a subsidiary of Norway-based BW Gas for its LNG project’s vessel chartering contract. The deal with BW Gas will last for five years.
FGEN LNG’s project is to accelerate its ability to introduce LNG to the Philippines as early as the third quarter of 2022. The project will serve the natural gas requirements of existing and future gas-fired power plants of third parties and FGEN LNG affiliates.
FGEN LNG believes the project will play a critical role in ensuring the energy security of the Luzon Grid and the Philippines. The entry of LNG will encourage new power plant developments, as well as industrial and transport industries, to consider it as a replacement to more costly and polluting fuels, the company states.