PHILIPPINES based First Gen Corp has shortlisted three bidders to provide a floating storage and regasification unit ( FSRU ) for its Batangas liquefied natural gas ( LNG ) terminal.

In a statement to the Philippine Stock Exchange, First Gen said its wholly owned subsidiary FGEN LNG Corp had made a shortlist of BW Gas Limited, GasLog LNG Services Ltd, and Hoegh LNG Asia Pte Ltd.

The three bidders provide energy infrastructure, and would order the FSRU from a specialized yard such as Hyundai Heavy Industries, and operate it.

Hoegh LNG Asia Pte Ltd is a wholly-owned subsidiary of Hoegh LNG Ltd, which is itself a wholly-owned subsidiary of Oslo stock exchange listed Hoegh LNG Holdings.

BW Gas Ltd is a wholly-owned subsidiary of Oslo Stock Exchange listed BW Group, and is involved in the global market of transportation and floating regasification services of LNG, including construction, ownership and operation of FSRUs and other LNG carriers.

Listed on the New York Stock Exchange, GasLog LNG Services Ltd is a wholly-owned subsidiary of GasLog, which is among the largest independent LNG midstream companies in the world, with experience dealing with cargo types as diverse as LNG, oil, dry-bulk, and chemicals.

At a time when many LNG projects in the early planning stage are being cancelled, FSRUs can offer producers a much faster construction period, and are much cheaper than land-based LNG trains. They typically cost around US$300 million.

According to Hoegh, there are currently 35 FSRUs on the water, with another six on order plus three conversions on order. The firm is also currently tendering on projects on the Indian subcontinent and in Latin America.

As more countries reduce coal usage, and bring more LNG in their overall energy mix, demand for FSRUs is on the rise.

First Gen says that gas supply using the new FSRU could begin as early as the end of 2022.

US private equity firm KKR recently acquired an 11.9% stake in First Gen.