A five year deal has been concluded between a SUBSIDIARY First Gen Corp. and BW Gas Ltd. for the charter of a liquefied natural gas (LNG) carrier of an Offshore gas terminal project of the firm, Lopez-led in Batangas.
In a statement published on Monday, First Gen stated that its wholly-owned subsidiary FGEN LNG Corp., the Floating Storage Regasification Unit (FSRU), is a vessel with a storing capacity of 162,400 cubic meters (m3) for its five-year charter.
BW FSRU IV Pte Ltd. shall supply the FSRU, a liquefied natural gas transporter. The vessel — the BW Paris — has an output capability of 500 million standard cubic feet per day and a maximum gas output of 700 MMscfd.
The charter arrangement comes around two weeks after First Gen states that FGEN LNG will be chosen as FSRU supplier by the end of March between BW Gas Ltd and Hoegh LNG Asia Pte. Ltd.
“The BW Paris’ nominal sending potential is 25 percent higher than Malampaya’s output capacity, with a gas volume limit at its height of some 400 MMSCFD, and now diminishing,” First Gen said in a regulatory document to the stock exchange.
An FSRU, typically between 125,000 and 170,000 meters of storage space, has an on-board regasification facility, capable of returning LNG to its gas state and delivering it to a gas network directly.
The Energy Department said earlier that reserves in Luzon’s offshore project, Malampaya, would be utterly exhausted before 2027.
First Gen added, the vessel will reload LNG to trucks and small-scale LNG ships, which would then transport gas to surrounding regions, whilst the BW Paris will also provide additional storage and regasification facilities.
The firm said that, by the third quarter of next year, the LNG project allows its subsidiary to bring LNG to the country to meet the natural gas needs of FGEN LNG associates and third parties’ current and potential gas-fired plants.
In addition to stimulating the construction of new power plants, the addition of LNG in the Philippines would also enable different industries to view fuel as a substitute for “more expensive and pollutant” fuels.
‘To ensure the energy protection of the Luzon Grid and the Philippines, FGEN LNG believes that the project will play a critical role, especially as the indigenous resource Malampaya gas is expected to be least reliable in producing and supplying adequate gas-fired power plants in that region,’ said First Gene.
BW FSRU IV is associated with LNG’s global transport and floating regasification services business. It is owned entirely by BW Gas Ltd., a worldwide maritime firm, the BW Group.
The company is involved in transportation, floating infrastructures, development of deep water oil and gas and emerging sustainable technology.
For the infrastructure, procurement and building contract of the LNG terminal, FGEN LNG chose the central Australian contractor’s McConnell Dowell Philippines, Inc., in October.
First Gen signed a joint venture agreement on the planning, production, testing, commissioning, installation and ownership of the offshore interim project to be developed at the First Gen Renewable Energy Complex in Batangas City the same month with the Japanese corporation Tokyo Gas Co., Ltd. The project is being introduced.