Lopez-led FGEN LNG Corporation and Prime Infrastructure Capital Inc. of ultra bilyonaryo Enrique K. Razon Jr. for the lease and operation of a liquefied natural gas (LNG) storage and regasification terminal in Batangas City.
The LNG Terminal, which has received official certification from the Department of Energy (DOE) as an energy project of national significance, is a crucial component of the government’s strategy to enhance energy security and support the country’s renewable energy capacity.
President Ferdinand “Bongbong” Marcos recently approved the renewal agreement for Malampaya Service Contract No. 38 (SC 38), ensuring the continued production of the Malampaya gas field and the exploration of remaining gas reserves until 2039.
This move underscores the government’s recognition of natural gas as a complementary transition fuel in the Philippine Energy Plan.
The lease agreement for the LNG terminal forms part ofPrime Infra’s gas aggregation strategy, which leverages its existing Malampaya project facilities and expertise in the natural gas market.
This strategy aims to provide a reliable and cost-effective supply of clean gas to the country’s natural gas power plants, ensuring stable fuel costs and supporting the growth of the natural gas power generation capacity.
Both FGEN LNG and Prime Infra acknowledge the importance of a steady and secure source of natural gas, contributing to low-cost and sustainable baseload power. This initiative aligns with the government’s call for significant undertakings to enhance national competitiveness through the development of a competitive gas market, the availability of LNG as a new fuel source, and the exploration and commercial development of indigenous natural gas fields.