Power firm confirms talks on gas aggregation framework

Energy supply firm First Gen Corp. (First Gen) on Monday confirmed that there are ongoing discussions with Razon-led Prime Infrastructure Capital Inc. (Prime Infra) for the development of a gas aggregation framework.

According to First Gen, the framework will provide least solution for consumers, enhanced energy security, and a competitive market for power generation.

First Gen said in its disclosure to the Securities and Exchange Commission that the gas aggregation framework being discussed with Prime Infra was meant to “make it possible to blend currently declining volumes of indigenous Malampaya gas with imported liquefied natural gas.

It also aims to complement ongoing commercial development of new indigenous natural gas fields.

"The Gas Aggregator Framework is intended to make it possible to blend currently declining volumes of indigenous Malampaya gas with imported LNG to ensure a least-cost solution for consumers, enhance energy security, and provide a competitive power generation market, while exploration activities leading to the commercial development of new indigenous natural gas fields are undertaken,” First Gen said.

A key part to the gas aggregator framework would be the FGen LNG, a wholly-owned subsidiary of First Gen, which had signed a pact with Prime Infra for the use of its LNG terminal.

First Gen said this move is in response to the national government's call for significant investments to guarantee competitiveness in the energy sector.

The firm runs four gas-fired power plants with a combined capacity of 2,017 megawatts and these have been getting supply from Malampaya for many years.

The gas aggregate proposal was already presented to President Ferdinand “Bongbong” Marcos Jr.—LDF, GMA Integrated News