Philippines' First-Gen Seeks Partner for $1bln LNG Terminal
Lopez-led First Gen Corp (FGC) has started scouting for local and foreign partners for the construction of its $1-billion liquefied natural gas (LNG) import terminal in Batangas, to secure supply for its expanding portfolio of gas-fired power plants.
The president of First Gen, one of the Southeast Asian nation's biggest power producers, Francis Giles Puno said they are already studying an option to build their own terminal, hiring top advisers to look at the sites and oversee the selection process.
Puno said the First Gen had tapped Tractebel Engineering of France to do the detailed design of an onshore LNG terminal. He said First Gen would use the design as basis for the construction of the terminal.
Puno declined to identify potential partners, but said First Gen was discussing "possible areas of cooperation" in natural gas with firms including Royal Dutch Shell. Shell, TOTAL, BP and other global players are welcome to bid for the supply, he said.
A statement from the company said FGC’s board approved, among others, the appropriation of P14.5 billion ($1-billion) as investment in LNG.
Puno said the LNG facility will supply natural gas to its power plants located in Batangas. “We have already a detailed design of the LNG terminal and the only thing we need to do next is to bid it out,” he said
After the bidding, the company will solicit proposals from interested parties, which in turn will be their basis to decide whether to pursue the project.
LNG is natural gas that has been converted into a liquid state for easier storage and transportation. Upon reaching its destination, LNG is “re-gasified” so it can be distributed through pipelines as natural gas.
