Philippines' First Gen Asks DOE for Extension on LNG Terminal Project

(Reuters) — Philippine power producer First Gen Corp. said on Thursday it has asked the Department of Energy to extend its permit to construct an offshore LNG terminal in the country by six months due to circumstances delaying the project.

The request to extend the permit to March 23 next year from Sept. 23 this year was made due to expectations of a delay in completing the project caused by events and circumstances beyond its control, the company said in a statement. It did not specify the issues the project faced.

First Gen's proposed LNG terminal is among at least six such projects approved by the government, which is looking to open the doors to imported LNG as soon as this year to serve existing and future gas-fired power plants.

The Southeast Asian country will need to import LNG as its Malampaya gas field in the South China Sea is expected to run dry by 2027, based on the government's projection.

Malampaya gas, which fuels power plants with a combined capacity of more than 3,000 megawatts, provides up to 20% of the Philippines' electricity requirements.

First Gen's LNG terminal project is being undertaken by its subsidiary FGEN LNG Corp.

FGEN had planned to put its LNG terminal into commercial operation by October this year, based on a timetable of projects from the energy department.

First Gen also said the delivery of a Floating Storage Regasification Unit — the FSRU BW Paris — had been moved to the end of the second quarter or early in the third quarter of 2023, from the first quarter.

First Gen said the FSRU provider, BW FSRU IV Pte Ltd., a subsidiary of BW Gas Ltd., has agreed to move the delivery schedule. BW did not immediately respond to a request for comment.

First Gen last year executed a five-year deal with BW FSRU for the charter of the FSRU.

 

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