MANILA - First Gen Corp and its partner Tokyo Gas Co Ltd on Monday broke ground on their $1 billion (P52.3 billion) liquefied natural gas terminal project in Batangas City.
FGEN LNG Corp's LNG Terminal project is "construction ready" following significant pre-development work, the company said in a statement.
Once completed, the project will allow the importation of liquefied natural gas, ensuring a stable supply even after the Malampaya gas supply is depleted, the company said.
"Our power needs are still growing…But also the needs of the world. Because of climate change, it also means we have to go to cleaner fuels and we think natural gas is really the way to go," First Gen CEO and chairman Federico Lopez told ABS-CBN News.
Carbon emissions from natural gas are half of what coal-sourced fuel emit per kilowatt hour, Lopez said.
Officials led the Japanese ceremony "Kagami Biraki,"performed to mark "the beginning of something new," member of the Board, senior managing executive officer and chief executive of the Global Gas Division Kunio Nohata said.
“We consider that the holding of a Kagami Biraki ceremony is an appropriate way for First Gen and Tokyo Gas to celebrate our collaboration, the completion of the significant pre-development work, and the commencement of the next phase of the development of the project,” Lopez said.
In March, the Department of Energy granted First Gen and Tokyo Gas the approval to proceed with their LNG project. First Gen and Tokyo Gas signed a joint development agreement for the project in Dec. 5, 2018.
Lopez said the project could be completed by 2024.
News.abs-cbn.com and First Gen are part of the Lopez Group.
-- with a report from Alvin Elchico, ABS-CBN News