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    Philippines' First Gen asks BW Gas to delay delivery of FSRU

Summary

The move is due to the delay in the completion of its LNG import terminal.

by: Shardul Shardul

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Philippines' First Gen asks BW Gas to delay delivery of FSRU

Fgen LNG, a unit of Manila-listed First Gen Corp, and BW Gas have agreed to move delivery of the FSRU BW Paris from Q1 2023 to the end of Q2 or early Q3 2023 due to the delay in completion of its LNG import terminal in the Philippines, First Gen said on June 16 in a stock exchange filing.

The parties had signed a five-year charter deal in May 2021. BW Paris has an LNG storage capacity of 162,400 m3 and nominal and peak gas send-out capacities of 500mn ft3/day and 750mn ft3/day, respectively. In addition to providing storage and regasification services, the BW Paris is capable of providing ancillary services such as the reloading of LNG into trucks and small-scale LNG vessels.

Meanwhile, Fgen LNG has also requested the department of energy to extend the validity of its permit to construct, expand, rehabilitate and modify for the terminal from September 23, 2022 to March 23, 2023.

The company said that the delay in the completion of the project is caused by events and circumstances not within the control of Fgen LNG.

Fgen LNG believes the project will play a critical role in ensuring the energy security of the Luzon grid and the Philippines, particularly as the indigenous Malampaya natural gas resource is expected to decline in the next few years.