FGen taps Japan’s JGC as EPC contractor for Batangas LNG plant

Lopez-led First Gen Corp. has signed an engineering, procurement and construction contract with JGC Corp. of Japan for its liquefied natural gas project in Batangas.

This marks the conclusion of an extensive EPC tendering phase which commenced in 2014, during which around 22 companies were invited and 18 expressed an interest to work on the project.

FGEN believes 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 can no longer be counted on at all times to produce and provide sufficient fuel supply for the country’s existing gas-fired power plants.

The Luzon grid experienced over 90 intervals of red alert and over 270 intervals of yellow alert from March to June due to forced outages of several coal-fired power plants.

“In order to alleviate similar crises that are likely to arise prior to 2024 when the existing gas supply contracts expire, FGEN’s immediate focus, in conjunction with its preferred tenderer JGC, is to complete a detailed study focusing on modifications that can be made to FGEN’s existing jetty that would allow FGEN to receive large and small-scale LNG vessels and to continue to receive liquid fuel,” the company said.

A major benefit of completing this work early would be that as soon as the jetty modifications are completed, FGEN will be able to bring in a floating storage regasification unit on an interim basis. This will allow FGEN to receive LNG as early as 2021, even prior to the expiration of the Malampaya gas contracts in 2024.

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