First Gen selects global contractors for LNG terminal

MANILA, Philippines — Lopez-led First Gen Corp. has selected three preferred global contractors to build its offshore liquefied natural gas (LNG) terminal.

In a disclosure to the Philippine Stock Exchange yesterday, First Gen said its wholly owned unit FGEN LNG Corp. has completed the initial evaluation for the charter of the floating storage and regasification unit (FSRU).

The subsidiary has selected three preferred bidders to continue to the next stage of its binding tender process, namely BW Gas Limited, Dynagas Ltd., and Hoegh LNG Asia Pte Ltd.

BW Gas Limited is a wholly owned subsidiary of the BW Group, and is involved in the global market of transportation and floating regasification services of LNG, including construction, ownership, and operation of FSRUs and other LNG carriers.

Based in Athens, Greece, Dynagas Ltd. is a LNG maritime transportation company, which manages a fleet of LNG carriers (15 on the water and two under construction) on long term charters.

Hoegh LNG Asia Pte. Ltd. is a wholly owned subsidiary of Hoegh LNG Limited, which is itself a wholly owned subsidiary of Oslo stock exchange listed Hoegh LNG Holdings. Hoegh LNG Holdings, which specializes in the global market of transportation and floating regasification services of LNG.

The Lopez firm said the FSRU that FGEN LNG is seeking to charter would provide LNG storage and regasification services in respect of FGEN LNG’s Interim Offshore LNG Terminal that it is developing at the First Gen Clean Energy Complex in Batangas City.

The Interim Offshore LNG Terminal consists of construction works necessary to modify the existing liquid fuel jetty that will enable it to become multiple-use, and build an adjunct onshore gas receiving facility to receive and deliver gas to end-users.

The project will allow FGEN LNG to accelerate its ability to introduce LNG to the Philippines as early as the third quarter of 2022, to serve the natural gas requirements of existing and future gas-fired power plants of third parties and its affiliates.

A FSRU is a LNG carrier (LNGC) capable of storing LNG and which has an onboard regasification plant capable of returning LNG into a gaseous state and then supplying it directly into the gas network.

A typical FSRU has a storage capacity of between 125,000 cubic meters` and 170,000 cubic meters.

According to the International Gas Union World LNG Report-2020 Edition, approximately six percent of the global fleet of 541 LNGC vessels operate as FSRUs as of end-2019.