Philippine utility First Gen is looking for the best supplier for the initial term supply in the period between 2023 and 2027 for the Batangas LNG terminal.
According to local media , First Gen executive vice president and CCO Jon Russell said the company is also in talks with several LNG suppliers for a master sale and purchase agreements that allow the spot purchase of LNG in addition to the term supply.
The FSRU is an interim import unit that will be operational by the fourth quarter of 2024. It is an addition to the proposed FGEN Batangas LNG terminal located at the First Gen Clean Energy Complex in Batangas City, Philippines.
The interim offshore LNG terminal is being developed by subsidiary FGen LNG in partnership with Tokyo Gas. FGen LNG has executed time charter party deals with the BW Group and Svitzer. So, BW will provide a floating storage and regasification unit (FSRU). On the other hand, Svitzer will supply and operate four new heavy-duty tugboats that will manage the arrival and departure of the FSRU and LNG carriers.
Russel stressed that, so far, the response of the market is very positive. However, the company hasn’t picked suppliers yet.
According to Russel, this terminal is crucial to maintaining the supply of natural gas in the Philipines. This is many because indigenous sources run out; the Malampaya gas field could be depleted by 2027.
The Batangas LNG terminal will thus allow First Gen to import LNG from around the world.