Shell Secures Lucrative LNG Contract

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Credit: Venti Views/Unsplash

Shell, a leading British energy company, has secured the contract to supply a shipment of liquefied natural gas (LNG) to First Gen Corporation’s LNG import project in the Philippines, which utilizes a floating storage and regasification unit (FSRU), as reported by Upstream.

LNG cargo

First Gen has awarded Shell Eastern Trading a contract for its first LNG cargo. Shell will supply approximately 154,500 cubic meters of LNG on a delivered ex-ship basis within the specified delivery window. The cargo will be used for the gassing up and cooling down of the BW Batangas FSRU, which is currently located in Subic Bay and will later be moved to FGEN’s LNG terminal in Batangas for commissioning activities.

Domestic power generation

The LNG import project aims to utilize regasified volumes for domestic power generation, compensating for the declining pipeline gas supply from the Malampaya field. FGEN’s LNG terminal will expedite the introduction of LNG in the Philippines, serving the natural gas needs of existing and future gas-fired power plants. The company views the terminal as crucial for ensuring energy security in the Luzon grid and the entire Philippines.

 

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Source: Upstream