First Gen to operate new LNG terminal by 2016

Construction to begin in 2014.

First Gen Corporation, the Philippines’ second largest electricity producer, intends to begin operating its liquefied natural gas terminal by 2016 at the earliest.

It expects to spend at least US$1 billion for the terminal to be built on a 20 hectare lot near the company’s Sta. Rita plant in Batangas province south of Manila.

First Gen intends to build the LNG facility as a replacement source for LNG. The company sources its fuel requirements from Royal Dutch Shell’s Malampaya field in the island of Palawan. The Malampaya reserves are expected to last until 2022.

President Giles Puno said the company is working on the design of the LNG facility.

"If we have to bring in LNG by 2022, we might as well build capacity between now and 2022,” Puno said.

He said First Gen hopes to complete the study in the third quarter and start construction by next year.