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DOE insists on FGen’s original LNG project completion

By Myrna M. Velasco

The First Gen Corporation (FGen) has been urged to fast-track its floating storage regasification unit (FSRU) and complete it within the term of the Duterte administration.

Energy Secretary Alfonso G. Cusi

Energy Secretary Alfonso G. Cusi

Energy Secretary Alfonso G. Cusi told reporters that he had discussion with the company on its proposed liquefied natural gas (LNG) import facility, but he said the department is not agreeable with their new timeframe.

“We asked them to do it faster. We want it to be done within this administration,” he said.

The energy chief had a virtual meeting with the executives of First Gen last week, where he conveyed that the department could not concur with the new timeframe on project implementation presented by the company. Cusi, however, did not divulge the new timetable for the project.

In March, prior to the enforcement of enhanced community quarantine (ECQ), project developer firm FGEN LNG Corporation, a joint venture between First Gen and Tokyo Gas Co. Ltd., submitted application with the DOE for a permit to construct, expand, rehabilitate and modify (PCERM) its existing liquid fuel jetty at its project site in Batangas City, so the FSRU installation can properly fit in.

In the earlier timeframe cast, it was eyeing to start construction around May this year. Nevertheless, because of the novel coronavirus pandemic, that had been snagged.

The permit-to-construct (PTC) is the follow-on license that LNG project developers will need to secure from the DOE – and that must be obtained on or before the lapse of the initial notice-to-proceed (NTP), which is the authority given by the government agency for the pre-development activities that shall be accomplished by proponents.

The FSRU will be the Lopez group’s vehicle to bring in LNG into the Philippines “on an interim basis,” and will also serve the introductory phase as to the utilization of LNG in the country’s energy sector.

That forms the first phase of its blueprinted LNG import terminal project, in which the longer development plan will be for the installation of onshore LNG import terminal, which will then require a higher investment of up to US$1.0 billion.

The engineering, procurement and construction (EPC) contract for the LNG import facility was award-ed to JGC Corporation of Japan in September 2019; and negotiations with prospective LNG suppliers also started last year.


Source: Manila Bulletin (https://business.mb.com.ph/2020/05/17/doe-insists-on-fgens-original-lng-project-completion/)

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