A UNIT of Lopez-led First Gen Corp. has entered into 10-year contract for towage and vessel support services with Denmark-based Svitzer in line with its offshore liquified natural gas (LNG) terminal project in Batangas City.
In a press release on Thursday, First Gen said Svitzer is providing four new build 75-ton bollard pull tug vessels, which will aid the operations of FGEN LNG Corp.’s floating storage regasification unit (FSRU) and LNG carriers.
An FSRU, which usually has a storage capacity of between 125,000 and 170,000 cubic meters, has an onboard regasification plant that can turn LNG back into its gaseous state and supply it directly into a gas network.
“FGEN LNG is developing the project to accelerate its ability to introduce LNG to the Philippines as early as the third quarter of 2022, to serve the natural gas requirements of existing and future gas-fired power plants of third parties and FGEN LNG affiliates,” the company said.
The First Gen subsidiary said the planned LNG project would play a crucial role in ensuring the country’s energy security, particularly the Luzon grid, adding that the offshore Malampaya gas field is expected to be “less reliable” in providing sufficient supply to the Philippines’ gas-fired plants.
FGEN LNG’s agreement with Svitzer comes two months after the former awarded a subsidiary of Norway-based BW Gas Ltd. for its LNG project’s vessel chartering contract. The deal with BW Gas will last for five years.
On its website, Svitzer says it is a global towage and sustainable marine solutions provider, employing over 4,000 skilled personnel and operating a fleet of more than 400 vessels.
Shares in First Gen improved by 1.64% or 50 centavos to close at P31 apiece on Thursday. — Angelica Y. Yang
