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First Gen applies for POM of Batangas LNG terminal

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PUBLICLY-listed First Gen Corporation has filed a request with the Department of Energy (DOE) for a 25-year Permit to Operate and Maintain (POM) for its liquefied natural gas (LNG) terminal in Brfgy. Sta. Rita Aplaya, Batangas City.

First Gen’s subsidiary, FGen LNG Corporation operates the terminal in collaboration with Japanese firm Tokyo Gas, under an interim offshore terminal (IOT) project.

DOE Oil Industry Management Bureau Director Rino Abad confirmed the application, noting that the department and the Department of Environment and Natural Resources (DENR) have already conducted inspections. Abad said that the company’s confidence in applying for a 25-year permit reflects the project’s readiness.

Commissioning activities for the LNG facility were completed by the end of September 2024, generating revenue of Php 3.567 billion during the first nine months of the year. Most of this income came from terminal fees charged to natural gas power plants for LNG transport, storage, and regasification services.

Meanwhile, the LNG business contributed USD 1 million to First Gen’s income for the first nine months of 2024, a significant improvement from the USD 1.9 million net loss reported in the same period last year. This increase was largely attributed to terminal towage fees billed to the natural gas plants.

However, FGEN LNG posted a net loss of Php 163.7 million during the same period, which marks a slight increase of 2.8% from the Php 159.2 million loss in 2023. The losses were due to foreign exchange losses, reversing last year’s gains, and a higher provision for income taxes.

First Gen remains one of the Philippines’ largest independent power producers and is the country’s leading natural gas power generator, with around 2,000 megawatts (MW) of operational gas assets out of its total 3,668 MW installed capacity.|

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