First Gen Corp. has awarded its most recent liquefied natural gas tender notice to Shell Eastern LNG.
Federico Lopez, First Gen chairman, shared this development with financial reporters at the sidelines of a forum hosted by the Net Zero Carbon Alliance in Makati City.
Earlier this month, First Gen opened an LNG tender requiring 154,500 cubic meters of fuel for delivery from 14 to 18 October this year.
The company said the contract is for delivery on ex-ship basis at the Subic Bay Freeport in Zambales and for unloading into the storage tanks of the BW Batangas floating storage regasification unit.
First Gen operates gas-fired power plants with a combined capacity of 2,017 megawatts (MW) in Batangas.
Lopez said First Gen is hopeful of eventually securing long-term LNG supply deals rather than spot purchases.
“At some point, the country really wants to get the best benefit of LNG. Long-term contracting is better because you can go to the market, to the LNG suppliers and say this is my amount, it’s big and it can be over a certain term, a much longer term,” Lopez said.
First Gen subsidiary FGEN LNG Corp. has constructed an interim offshore LNG terminal and executed a five-year charter for BW Batangas.
The LNG terminal serves the natural gas requirements of existing as well as future gas-fired power plants of third parties and of First Gen’s affiliates.
