First Gen, in collaboration with Tokyo Gas, is progressing with the development of the Interim Offshore LNG Terminal at the First Gen Clean Energy Complex in Batangas City, Philippines.

On 7 July, the company completed its international tender for the first LNG cargo and awarded the contract to Shell Eastern LNG. Under this contract, Shell Eastern LNG will supply approximately 154,500 m3 of LNG within the delivery window of 1 August to 30 September 2023.

The LNG cargo will be transported by an LNG carrier to facilitate the gassing-up and cooling-down of the BW Batangas FSRU. Subsequently, the LNG cargo will be transferred to the storage tanks onboard the FSRU at Subic Bay. Once the process is completed, the BW Batangas will return to the FGEN LNG Terminal in Batangas to finalize commissioning activities.

The purchased LNG will be utilized by FGEN's existing gas-fired power plants within the First Gen Clean Energy Complex in Batangas City.

On 8 July, FGEN LNG Corporation (FGEN LNG), a wholly-owned subsidiary of FGEN, achieved another project milestone by successfully mooring and securing the BW Batangas FSRU at the FGEN LNG Terminal in Batangas. The FSRU will remain in Batangas until it departs for Subic Bay to collect the first LNG cargo.

Previously, FGEN LNG signed a Memorandum of Understanding (MoU) with Prime Infrastructure Capital, Inc. (Prime Infra) for the proposed lease and operation of the FGEN LNG Terminal. While no definitive agreements have been signed, FGEN LNG and Prime Infra are actively developing a Gas Aggregator Framework, with the FGEN LNG Terminal being a primary element.

The Gas Aggregator Framework aims to blend the declining volumes of indigenous Malampaya gas with imported LNG, ensuring a cost-effective solution for consumers, enhancing energy security, and providing a competitive power generation market. Additionally, this framework will support exploration activities for the commercial development of new indigenous natural gas fields.

These efforts align with the national government's call for significant investments to ensure national competitiveness in the energy sector.