LOPEZ-LED First Gen Corp. has awarded Japanese company TG Global Trading Co. a contract to supply a liquefied natural gas (LNG) cargo.
The parent company of TG Global, Tokyo Gas Co. Ltd., will supply one LNG cargo of approximately 125,000 cubic meters with delivery next month, First Gen said in a statement on Thursday.
The LNG cargo will be shipped to First Gen’s wholly owned subsidiary, First Gen Singapore Pte. Ltd (FGEN Singapore), through an LNG carrier which will be unloaded into the storage tanks of the BW Batangas floating storage and regasification unit (FSRU).
The FSRU is currently berthed at the First Gen Clean Energy Complex in Batangas City. The LNG will be used by First Gen’s existing gas-fired power plants which are also located in the complex.
The awarded contract was the result of the fifth tender process for LNG cargo earlier this month.
First Gen has four existing gas-fired power plants with a combined capacity of 2,017 megawatts that have been supplied with gas from the Malampaya field, the country’s sole natural gas provider.
FGEN LNG Corp., a subsidiary of First Gen, constructed an interim offshore LNG terminal and executed a five-year time charter party for BW Batangas to provide LNG storage and regasification services.
“[First Gen] believes that FGEN LNG Terminal will play a critical role in ensuring the energy security of the Luzon grid and the Philippines,” the company said.
Tokyo Gas announced in 2020 the establishment of TG Global “to lead the further development of the liquefied natural gas trading business of the Tokyo Gas Group.”
First Gen’s subsidiary, First Gen LNG Holdings Corp. executed a shareholder’s agreement and share subscription agreement with Tokyo Gas to acquire a minority stake in FGEN LNG.
In April, First Gen awarded a contract to Chinese company CNOOC Gas and Power Trading & Marketing Ltd. from its fourth tender process for one LNG cargo of approximately 130,000 cubic meters.
Shares in the company went down by six centavos or 0.32% to close at P18.52 each. — Sheldeen Joy Talavera
