First Gen unit, Prime Infra sign MOU on LNG terminal

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By Alena Mae S. Flores

FGEN LNG Corp. of the Lopez Group and Prime Infrastructure Capital Inc. of businessman Enrique Razon Jr. signed Thursday a memorandum of understanding for the proposed lease and operation of the liquefied natural gas storage and regasificaton terminal being developed by the former at the First Gen Clean Energy Complex in Batangas City.

Manila Standard TODAY

First Gen is developing the LNG terminal in Batangas that is set to start commercial operations this year to cater to natural gas power plants in Batangas.

“The lease of the LNG terminal will form part of Prime Infra’s proposed gas aggregation strategy that is focused on leveraging its existing Malampaya project facilities and its expertise in the natural gas market to ensure a reliable and lowest cost supply of clean gas at stable fuel costs to the country’s natural gas power plants,” First Gen said in a disclosure to the stock exchange.

“The agreement embodies a mutual recognition by both FGEN LNG and Prime Infra of the need to ensure a steady and secure source of natural gas providing low-cost and sustainable baseload power through gas aggregation,” the company said.

First Gen said the aggregator enables the formation of a competitive gas market underpinned by the growth of the natural gas power generation capacity in line with Department of Energy’s power development plan, the availability of LNG as a new fuel source and the exploration for and commercial development of new indigenous natural gas