Shell to deliver commissioning cargo to First Gen's Philippines terminal
Manila-listed First Gen Corporation (FGEN) has awarded a contract to Shell Eastern Trading for the deliver of the first LNG cargo to its floating LNG terminal in the Philippines, it said on July 10.
Shell Eastern LNG will supply one LNG cargo of approximately 154,500 m3 to FGEN's subsidiary, First Gen Singapore, on a delivered ex-ship basis. The delivery window for the cargo is between August 1 and September 30, 2023.
The LNG cargo provided by Shell Eastern LNG will be delivered by an LNG carrier, which will facilitate the gassing-up and cooling-down of the BW Batangas floating storage and regasification unit (FSRU) and transfer the LNG cargo into its storage tanks at Subic Bay.
Afterward, the BW Batangas will return to the FGEN LNG terminal in Batangas to complete commissioning activities. The purchased LNG will be used by FGEN's existing gas-fired power plants in the First Gen Clean Energy Complex in Batangas City.
On July 8, FGEN LNG achieved a significant 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 from Shell Eastern LNG.
FGEN currently operates four gas-fired power plants with a combined capacity of 2,017 MW that have been supplied with gas from the Malampaya field, an indigenous offshore gas field.
FGEN LNG has executed a five-year time charter party for the BW Batangas, which will provide LNG storage and regasification services for the project. BW Batagangas was earlier called BW Paris. Fgen LNG and BW LNG executed a five-year deal in 2021 for the charter of BW Paris.
FGEN LNG has previously signed a memorandum of understanding with Prime Infrastructure Capital, for the proposed lease and operation of the FGEN LNG terminal. Both parties continue to develop a gas aggregator framework, which aims to blend declining volumes of indigenous Malampaya gas with imported LNG, First Gen said.