First Gen eyes more LNG projects

LOPEZ-LED First Gen Corp. is eyeing to build additional liquefied natural gas (LNG) terminals outside Batangas to meet rising power demand, a company official said.

“I think that’s part of the plan, as long as there’s demand,” First Gen Senior Vice-President and Chief Revenue Officer Vincent Martin C. Villegas said on the sidelines of the BusinessWorld Economic Forum last week.

However, Mr. Villegas said there must be sufficient market demand to justify the construction of more LNG terminals.

“You have to create the market to make sure that there’s a market. So, today, we already have two LNG terminals. So, we have to fully utilize that, and then you go to the next terminal,” he said.

Currently, there are two operating LNG terminals in the country. One is owned and operated by FGEN LNG Corp., a subsidiary of First Gen, while the other is jointly owned by Meralco PowerGen Corp., Therma NatGas Power, Inc., and San Miguel Global Power Holdings Corp.

First Gen’s LNG terminal was developed in partnership with Tokyo Gas, Japan’s largest natural gas utility company.

Under their joint cooperation agreement, Tokyo Gas will hold a 20% participating interest in the interim offshore terminal.

In February, Tokyo Gas completed its acquisition of a 20% equity stake in FGEN LNG.

The transaction marked the Japanese firm’s first investment in a commercially operational overseas LNG terminal project.

“We’re looking at growing with them, either through another LNG terminal or pursuing small-scale business, which is a natural if you already have a terminal,” Mr. Villegas said.

Earlier this year, FGEN LNG secured a permit from the Department of Energy to operate and maintain its interim offshore LNG terminal for 25 years.

Mr. Villegas said he expects LNG prices to further soften over the next two years, primarily due to additional supply from new gas fields.

First Gen uses LNG to fuel its existing gas-fired power plants with a combined capacity of 2,017 megawatts (MW). The company’s portfolio also includes 1,200 MW of installed capacity from geothermal power plants and over 400 MW from hydro, wind, and solar facilities.

At present, First Gen has a total of 3,668 MW of combined capacity across its portfolio of geothermal, wind, hydro, solar, and natural gas-fired plants. — Sheldeen Joy Talavera