First Gen Corp. and Prime Infrastructure Capital Inc. have executed a 15-year terminal lease agreement involving FGEN LNG’s liquefied natural gas storage and regasification terminal in Batangas City.
The TLA was signed by First Gen subsidiary FGEN LNG Corp. and Prime Infra subsidiary Gas Aggregator Philippines Inc. subject to the satisfaction of a number of precedent conditions.
The lease of the LNG terminal forms part of Prime Infra’s proposed gas aggregation strategy allowing it to deploy a tolling business model that in turn allows it to leverage on its Malampaya project facilities and its expertise in the natural gas market.
The government earlier determined natural gas as a complementary transition fuel supporting the Department of Energy’s 2020 to 2040 Philippine Energy Plan ensuring energy security while enhancing the country’s renewable energy capacity.
First Gen is one of the biggest independent power producers in the country and the leading gas power generation company with approximately 2,000 megawatts (MW) in operating gas assets composed of four gas-fired power plants, including the 1,000-MW Santa Rita, the 500-MW San Lorenzo, the 414-MW San Gabriel and the 97-MW Avion.
Prime Infra is the infrastructure arm of the Razon Group committed to providing economically enduring, environmentally-resilient and socially relevant projects that address urgent priorities in the sectors of water, sustainable energy and waste management.
