Connect with us

Hi, what are you looking for?

Economy

First Gen unit picks Norway firm’s LNG carrier

A SUBSIDIARY of First Gen Corp. has entered into a five-year contract to charter a liquefied natural gas (LNG) carrier from a unit of Norway-based BW Gas Ltd. in line with the Lopez-led company’s offshore gas terminal project in Batangas.

In a disclosure on Monday, First Gen said the floating storage regasification unit (FSRU) that will be provided to its wholly owned subsidiary FGEN LNG Corp. is a vessel with a storage capacity of 162,400 cubic meters (m3) under their five-year time charter party.

The FSRU, a liquefied natural gas carrier, will be provided by BW FSRU IV Pte Ltd. The vessel — the BW Paris — has a nominal and peak gas send-out capacity of 500 million standard cubic feet per day (MMscfd) and 700 MMscfd, respectively.

The charter deal comes around two weeks after First Gen said that FGEN LNG was due to select between BW Gas Ltd and Hoegh LNG Asia Pte. Ltd as its FSRU provider by the end of March.

“The nominal send out capacity of the BW Paris is 25% more than the production capability of Malampaya, which at its peak produced a maximum gas volume of approximately 400 MMscfd, and which is now declining,” First Gen told the stock exchange in its regulatory filing.

An FSRU, which typically has a storage capacity of between 125,000 and 170,000 cubic meters, has an onboard regasification plant that can turn LNG back into its gaseous state and supply it directly into a gas network.

The Department of Energy earlier said that the reserves of the offshore Malampaya project, which fuels gas-fired power plants in Luzon, will be completely depleted by 2027.

BW Paris can provide ancillary services in addition to providing storage and regasification, First Gen said, adding that the vessel can reload LNG into trucks and small-scale LNG vessels, which will then distribute the gas to nearby areas.

The firm said that the LNG project will allow its subsidiary to introduce LNG to the country by the third quarter next year to serve the natural gas requirements of existing and future gas-fired plants of FGEN LNG’s affiliates and third parties.

Aside from spurring new power plant developments, the entry of LNG in the Philippines will encourage various industries to consider the fuel as a replacement to “more costly and polluting” fuels, First Gen said.

“FGEN LNG believes the Project will play a critical role in ensuring the energy security of the Luzon Grid and the Philippines, particularly as the indigenous Malampaya gas resource is expected to be less reliable in producing and providing sufficient fuel supply for the country’s existing gas-fired power plants,” First Gen said.

BW FSRU IV is engaged in the global market of transportation and floating regasification services of LNG. It is under BW Gas Ltd., which is wholly owned by the BW Group, a global maritime company.

The group is involved in shipping, floating infrastructure, deep-water oil and gas production, and new sustainable technologies.

In October, FGEN LNG selected McConnell Dowell Philippines, Inc., the local unit of an Australian contractor, for the LNG terminal’s engineering, procurement and construction contract.

In the same month, First Gen signed a joint cooperation agreement with Japan’s Tokyo Gas Co., Ltd to design, develop, test, commission, construct, own, operate and maintain the interim offshore project, which will be built at the First Gen Clean Energy Complex in Batangas City.

Shares of First Gen in the local bourse were unchanged at P30.10 apiece on Monday. — Angelica Y. Yang

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Latest

Investing

About 10% of Poundland products are no longer priced at £1, the discount retailer has said. Poundland moved away from pricing everything at £1...

Investing

The BT-owned mobile operator EE is to start charging UK customers to use their phones in Europe, having previously said it had no plans...

Investing

Government plans to restrict junk food advertising on television and online have been criticised by campaigners who say they contain too many exemptions to...

Investing

Deliveroo scored a fresh victory in the legal fight for its riders to be recognised as self-employed yesterday when the Court of Appeal ruled...

Investing

Foreign holidays in the Balearic islands, Malta and Madeira were given the go-ahead last night despite threats from the European Union to close the...

Economy

StackLeague is the country’s 1st year-round competitive programming league launched last March 16 and now with over 3,000 programmers in the league. This pioneering...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Economy

THE Securities and Exchange Commission (SEC) has warned the public from investing or to stop any investment in a group named Maxxprofit Computer Trading...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!