First Gen awards LNG cargo contract to Tokyo Gas unit

This is the company’s fifth LNG cargo. 

First Gen Corp. has awarded the contract to Tokyo Gas Co. Ltd. subsidiary TG Global Trading Co. for the delivery of one liquified natural gas (LNG) cargo. 

In a bourse filing, First Gen said the cargo is approximately 125,000 cubic metres, with delivery expected in July 2024 to its wholly-owned subsidiary, First Gen Singapore Pte. Ltd.

It will be delivered by an LNG carrier which will be unloaded into the storage tanks of the BW Batangas floating storage and regasification unit that is currently berthed at the First Gen Clean Energy Complex in Batangas City. 

The LNG will be utilised by First Gen’s existing gas-fired power plants which are also located in the complex. 

First Gen currently has four gas-fired power plants with a combined capacity of 2,017 megawatts. These have been relying on gas from the Malampaya field for years.

The company said its subsidiary FGEN LNG Corporation has constructed its interim offshore LNG Terminal and executed a five-year time charter party for the charter of the BW Batangas, which will provide LNG storage and regasification services. 

“The FGEN LNG Terminal will accelerate the ability to introduce LNG to the Philippines, to serve the natural gas requirements of existing and future gas-fired power plants of third parties and FGEN’s affiliates,” First Gen said. 

It believes the FGEN LNG Terminal “will play a critical role in ensuring the energy security of the Luzon Grid and the Philippines.”

First Gen earlier announced it is setting aside $1.27b for its capital expenditure for 2024, majority of which will be for renewable energy projects.