First Gas Power to bid out EPC for LNG terminal next year

By Juzel L. Danganan

MANILA, Sept 27 (PNA) — First Gas Power Corp., a subsidiary of First Gen Corp., will bid out the engineering, procurement and construction (EPC) contract for its Liquefied Natural Gas (LNG) terminal next year.

“We will start bidding out the EPC next year. We also like to have partners before the end of the year,” First Gen president and chief operating officer Francis Giles Puno told reporters.

Puno noted the feasibility study was already completed and the company has shortlisted five potential contractors.

The president also bared the company is also having talks with potential partners, adding there are local and foreign firms under consideration.

He added the partners will start the construction of the terminal next year, with the site preparations already being designed and will be implemented next year.

Puno said, however, the project has time on its side as the contract with the Malampaya will still end around 2022 to 2024.

For the company’s LNG supply, the president stressed there’s a lot of supply offered in the market but that their partners will decide on the fuel and expansion.

Aside from supplying gas to its power plants, Puno said First Gen is also eyeing to supply its industrial partners of the gas produced from the estimated US$ 1-billion terminal.

“Once we build the gas terminal, it’s designed to be able to send lorries, trucks to the industrial partners — so we can load LNG in Batangas,” he said.

He added it could supply the gas to nearby areas in Batangas and some in Cavite.

For the partnership, the president bared on June that First Gen will retain its 50-percent stake on the project, while it will offer the rest to its other potential partners.

He stressed First Gen is seeking for a foreign partner, who has the expertise to operate and maintain the facility, adding the facilities should be world-class.

For its potential local partner, Puno said the firm could be a financial partner or potential offtaker.

Puno also said in May that the terminal will be built within four years.

First Gas Power Corp. owns and operates the 1,000-megawatt (MW) Santa Rita Power Plant, the 500-MW San Lorenzo Natural Gas Power Plants in Batangas and the upcoming 97-MW Avion Power Plant. (PNA)