First Gen eyes LNG terminal by 2016

MANILA, Philippines - First Gen Corp., the country’s second largest producer of electricity, is planning to put in place its liquefied natural gas (LNG) terminal by 2016 at the earliest, its top official said.

First Gen president Giles Puno said the company is working on the design of the LNG facility and is eyeing suppliers from countries in Asia, Australia and possibly in the Middle East.

 â€œWe need to start construction by next year if we are to have it by 2016 to 2018,” Puno said.

The company is looking to build a land-based LNG facility as a replacement source of gas. The company sources its fuel requirements for its two plants-Sta. Rita and San Lorenzo in Batangas – from Royal Dutch Shell Plc’s Malampaya field in offshore Palawan.

The Malampaya reserves are expected to last until 2022.

LNG is natural gas that has been converted into a liquid state for easier storage and transportation. LNG is then regassified and distributed through pipelines as natural gas to target facilities.

 â€œIf we have to bring in LNG by 2022, we might as well build capacity between now and 2022,” Puno said.

Puno said options for replacement source of gas include importing from Australia, Asia and some Middle Eastern countries.

The company has hired a technical consultant for the concept, design and engineering study.

He said First Gen hopes to complete the study in the third quarter of the year and start construction by next year.

First Gen expects to spend at least $1 billion for the terminal to be built on a 20-hectare lot near the company’s Sta. Rita plant.

“Our preference is to go for land-based LNG facility to be built adjacent to the Sta. Rita and San Lorenzo plants,” he said.

The Department of Energy (DOE) is looking for other sources of LNG to augment the current supply in the country on the back of growing demand.