First Gen Corp. said its subsidiary had signed the engineering, procurement and construction (EPC) contract with the local unit of an Australia-based group to build the Lopez-led company’s interim offshore liquefied natural gas (LNG) terminal.
It also said the same unit FGEN LNG Corp. had expanded to four the list of preferred entities from which it will choose the charter of a floating storage and regasification unit (FSRU) for the imported fuel.
Both actions were disclosed to the stock exchange on Friday.
Jonathan C. Russell, First Gen executive vice president and chief commercial officer, described the chosen EPC contractor — McDonnell Dowell Philippines, Inc. — as having “considerable experience in marine design and construction, including similar LNG projects.”
He also noted that the company built First Gen’s existing liquid fuel jetty in 1998 that it will now modify under the EPC contract.
The interim offshore terminal will allow FGEN LNG to hasten its ability to introduce the imported LNG to the country as early the third quarter of 2022, First Gen said. The facility will serve the natural gas requirements of existing and future gas-fired power plants, including those of affiliates and third parties.
Mr. Russell said McDonnell Dowell plans to tap into First Balfour, Inc. as a major subcontractor for the onshore gas receiving facility and the multi-purpose jetty mechanical and instrumentation installation works.
The date of construction is scheduled for the fourth quarter of 2020, as soon First Gen’s unit secures the requirements, including enhanced work and safety protocols to minimize the impact of COVID-19 on the personnel and local community.
Meanwhile, First Gen said its subsidiary had expanded the list of preferred bidders for the FSRU, or the carrier that can store LNG and return it to its gaseous state through an onboard regasification plant. The carrier can then supply the fuel to a gas network.
The tenderers are: BW Gas Ltd., Dynagas Ltd., GasLog LNG Services Ltd., and Hoegh LNG Asia Pte Ltd. The latest addition is Dynagas, an LNG martime transportation company based in Athens, Greece.
On Friday, First Gen shares inched up by 0.51 % to close at P29.35 apiece. — Angelica Y. Yang
