FGEN LNG, a unit of the Philippine utility First Gen Corporation submitted an application to the Department of Energy (DOE) for a permit to build interim LNG facilities within its Batangas LNG complex.
The application is for the construction of an Interim Offshore LNG Terminal within the First Gen Clean Energy Complex in Batangas City consisting of construction works necessary to modify First Gen’s existing liquid fuel jetty that will enable it to become multiple-use, allowing the receipt of large and small-scale LNG vessels as well as liquid fuel vessels, and build an adjunct onshore gas receiving facility.
Once completed, the project will allow First Gen to be able to bring in a floating storage and regasification unit (FSRU) on an interim basis and thus accelerate FGEN LNG’s ability to introduce LNG to the Philippines, the company said in its application.
FGEN LNG anticipates that, if the permit to construct, expand, rehabilitate and modify (PCERM) is granted by the DOE, it will be able to commence construction of the project as early as May of this year, in order to be able to receive LNG as early as the third quarter of 2022.
FGEN LNG believes that the project, and the early entry of LNG, will play a critical role in ensuring the energy security of the Luzon Grid and the Philippines, particularly as the indigenous Malampaya gas resource is expected to be less reliable in producing and providing sufficient fuel supply for the country’s existing gas-fired power plants, and even less so for additional gas-fired power plants.
The entry of LNG will encourage new gas-fired power plant developments, as well as industrial and transport industries to consider it as a replacement to more costly and polluting fuels, the company said.
The project represents the initial phase of the FGEN Batangas LNG terminal which was previously declared by the Energy Investment Coordinating Council (EICC) through the DOE as an ‘Energy Project of National Significance’ (EPNS).