BW Gas has won the contract to supply a leased floating storage and offloading unit for First Gen’s liquefied natural gas import project in the Philippines.
First Gen on Monday confirmed it had lined up a five-year charter for the BW Paris FSRU for the LNG import project at Batangas City on the island of Luzon.
BW beat off shortlisted rivals Hoegh LNG and Dynagas to land this floater job for project proponent FGEN LNG.
An FSRU is a vessel capable of storing LNG and which has an onboard regasification plant that can supply gaseous volumes directly into a gas distribution network. A typical FSRU has storage capacity of between 125,000 and 170,000 cubic metres.
The BW Paris will allow FGEN to import LNG into 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 its affiliate companies and third parties.
The vessel has storage capacity of 162,400 cubic metres and respective nominal and peak send-out capacities of 500 million and 750 million cubic feet per day of gas.
First Gen noted that the nominal send-out capacity of the BW Paris is 25% more than the production capability of Shell’s Malampaya field offshore the Philippines, which produced 400 MMcfd of gas at peak and is now in decline.
In addition to providing storage and regasification services, the BW Parisis capable of providing ancillary services such as the reloading of LNG into trucks and small scale LNG vessels, which can then distribute LNG to nearby industrial areas as well as the rest of the Philippine archipelago.
Australia-based contractor McConnell Dowell, a subsidiary of Aveng, is performing the engineering, procurement and construction contract for the related facilities for the Batangas FSRU project at the First Gen Clean Energy Complex.
McConnell Dowell’s workscope involves the construction works necessary to modify the existing jetty and build an adjacent onshore gas receiving facility.
First Gen and its sole 20% partner Japan’s Tokyo Gas will deploy the leased FSRU at Batangas as an interim import solution ahead of a likely future onshore receiving and regasification terminal.
FGEN LNG believes its LNG import project will play a critical role in ensuring the energy security of the Luzon grid and the Philippines, particularly as the indigenous Malampaya gas resource is expected to be less reliable in producing and providing sufficient fuel supply for the country’s existing gas-fired power plants, and even less so for additional gas-fired power plants.
“The entry of LNG will encourage new power plant developments, as well as industrial and transport industries, to consider it as a replacement to more costly and polluting fuels,” added First Gen.
The BW Group has strong connections to the Philippines, having established BW Shipping Philippines in 1988, which has become a leading provider of more than 2700 highly competent Filipino seafarers.
In total, BW employs more than 3700 Filipino seafarers estimated by BW to contribute more than US$80 million per annum to the Philippine economy.