First Gen expects 8th LNG delivery this month

First Gen Corp. expects to receive its eighth cargo of liquefied natural gas (LNG) this May. In addition, there are up to three more deliveries seen within this year.

Francis Giles Puno, the company’s president and chief operating officer, said the vessel may arrive in the country by next week, May 20. It is carrying about 130,000 cubic meters of LNG.

The shipment is coming from the Middle East and Asia, Puno said.

Asked if First Gen will seek more LNG shipments, Puno said it would depend on the consumption. Still, they are considering “another three cargoes.”

“For the summer, the turnaround is quite fast. We’re still assessing it,” he told reporters in a recent chance interview.

First Gen chair and chief executive officer Federico Lopez earlier said that the group would explore bigger and long-term supply deals with foreign players to secure better terms and prices.

The firm has a network of four gas-fired power plants with a combined installed capacity of 2,017 megawatts. These facilities are located in Batangas—the San Lorenzo, San Gabriel, Santa Rita and Avion gas plants.

Energy Secretary Raphael Lotilla has long highlighted the role of LNG as a transition fuel as the Philippines moves to embrace more clean energy projects.

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The Marcos administration is targeting to increase the share of renewables in the energy mix to 35 percent by 2030 from the current 22 percent.

Meanwhile, Puno said First Gen may realize “more stable … stronger figures” this year. He sees the geothermal assets catching up by the end of the year.

However, in the first quarter, the Lopez-led group posted a slight decline in its earnings due to weaker power sales. Its attributable recurring net income fell to $77 million (P4.49 billion) against the previous $81 million (P4.52 billion).

Aside from its gas-fired power facilities, First Gen has a renewable energy portfolio. This includes nearly 300 megawatt (MW) of hydropower generation, 160 MW from wind and solar facilities, and about 1,200 MW of geothermal generating capacity.