First Gen Corporation, part of the Philippines Lopez Group, has decided to progress its own domestic liquefied natural gas import project rather than remain involved with the protracted tender process for the venture proposed by state-owned Philippine National Oil Company (PNOC), writes Amanda Battersby.

First Gen officials said late last week that the company was now more inclined to proceed with its own LNG import project rather than continue as a potential partner for PNOC.

First Gen’s latest concept is said to be for a 5 million tonnes per annum facility that could be operational in four years.

Meanwhile, Dubai-based contractor Lloyds Energy is the first known player to have had its unsolicited proposal accepted by PNOC to bid for its planned LNG receiving and regasification facility and associated power plant at Batangas.

Industry sources have suggested that Lloyds might be tying up with Japanese utility Tokyo Gas in its bid to land the Philippines contract.

Lloyds was the first to submit an unsolicited proposal to PNOC for the development and construction of an integrated LNG hub with storage, liquefaction, regasification and distribution facilities, as well as a power plant with minimum capacity of 200 megawatts.

Others companies that submitted unsolicited proposals to PNOC for the LNG hub project, that could cost up to $2 billion, included China National Offshore Oil Corporation, Energy World Corporation, SK, First Gen and Jaya Samudra Karunia.

However, the lengthy evaluation of these proposals means that the tender process will now likely not be completed until next year, later than the government had been hoping but construction should still start in mid-2019, according to Philippines government officials.

Industry sources added that Shell also remains keen on progressing its touted Philippines LNG import project that could utilise a floating storage and regasification unit.

The Philippines has been eyeing LNG imports for more than 20 years, although no such plans have yet left the drawing board.

The government is keen to have at least one such project in operation to help the country cope with decreasing production from Shell’s giant Malampaya gas field, which is expected to happen in the mid-2020s.

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FirstGen to go it alone