First Gen seeks bidders for new LNG supply

Lopez-led First Gen Corp. is seeking bidders for a new supply of liquefied natural gas (LNG) to be used in its gas-fired power plants in Batangas.

The company, through its subsidiary First Gen Singapore Pte. Ltd., intends to procure a single LNG cargo amounting to 100,000 to 135,000 cubic meters, according to a bid notice.

The award to the selected bidder will be announced on April 12, and the delivery window will commence from May 25 to May 31.

The supply of the LNG cargo will be via a delivered ex-ship basis at the port located at First Gen Clean Energy Complex, where it will be loaded onto the BW Batangas, a floating storage and regasification unit.

“First Gen reserves the right at its sole discretion to cancel the invitation to bid or to reject any or all bids prior to the acceptance of a bid or proposal,” the company said.

In February, First Gen initiated an emergency tender process for a fourth LNG cargo, with a target delivery in March, in the interest of energy security.

However, the energy company postponed the purchase of the new LNG cargo as it needs commitment from Manila Electric Co. (Meralco) regarding the recovery of full costs and approval for LNG use..

Meralco Regulatory Affairs Head Jose Ronald V. Valles has said that the power distributor is waiting for guidance from the Energy Regulatory Commission (ERC).

In an order dated Feb. 29, the ERC directed Meralco and the subsidiaries of First Gen to submit documents on or before March 6 for review regarding the approval of the fuel costs that were passed on to consumers.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc.

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