LOPEZ-LED First Gen Corp. (First Gen) is keen to partner with state-run Philippine National Oil Co. (PNOC) in developing a liquefied natural gas (LNG) facility at its property in Mabini, Batangas.
First Gen confirmed on Thursday that their executives have had meetings with PNOC senior management on the possibility of working together to develop an LNG infrastructure.
Currently, PNOC is in talks with foreign partners for possible government-to-government (G2G) partnership to put up an LNG facility in the area, which will include a 200-megawatt (MW) power plant and a floating storage and regasification unit (FSRU).
According to the energy company, LNG represents the fuel of the future as it is competitive, clean and flexible and complements renewables and storage technologies
“We welcome government’s participation, through PNOC, in enabling LNG and to further grow the gas industry in the country and we look forward to further talks with PNOC. An LNG infrastructure is vital to our country’s energy security and we are committed to participate in building world-class facilities that are consistent with the administration’s thrust to develop the country’s infrastructure,” First Gen said.
“First Gen believes LNG infrastructure can be developed not only in Luzon but also in Visayas and Mindanao which will allow access to gas in the island grids,” the company added.
“First Gen has been developing an LNG terminal for the past five years to ensure that its 2,000 MW of operating gas plants will have LNG to replace Malampaya gas when it runs out. This will pave the way for the continued use of gas and the building of more LNG infrastructure,” First Gen added.
“First Gen acceded to be a minority partner [for the LNG project], that I can tell you, but not the details. They have been attending our negotiations, they recognize that they need us more,” PNOC president Reuben Lista said in an earlier interview on Tuesday.
He explained that if First Gen will build the LNG facility, they will have to spend $1.4 billion and they will still have to purchase gas.
“Win-win solution, there will be continuity in the power generation for government. We won’t have to put out 3,400 MW. Right now, if they convert fuel, their 2,000 KW is convertible to fuel oil but the cost will go up,” he added.
Liata said that PNOC was invited by First Gen to visit their area and the whole team went there to Batangas.
“They showed us their plans and I said, if they are really keen on putting it up, then I won’t put up my own anymore, then they said so let us partner,” he explained.
“The more LNG power storage facilities, there will be more LNG power plants, which we like because you are not going to put up a storage facility if you are not going to put up a power plant because only PNOC and First Gen–up to 2023—[are]authorized to put up a pipeline,” the PNOC official said.
After 2023, PNOC is the only one that is authorized to put up a pipeline, Lista added.