Tokyo Gas and First Gen have signed an agreement to co-develop and operate an LNG receiving terminal in the Philippines.
The project is Tokyo Gas’s first energy infrastructure investment in the country. It will be in First Gen’s LNG complex in Batangas province.
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Tokyo Gas will have 20% stake in the project, First Gen announced.
Other financial details of the project have not yet been disclosed by the company.
Philippine Energy Secretary Alfonso Cusi previously told the news agency that three different groups were shortlisted to build the LNG receiving terminal, including a team of First Gen and Tokyo Gas.
Once complete, the facility will be the first of its kind in the country.
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By GlobalDataConstruction of the LNG terminal is a part of the plan to support LNG imports to the country as domestic supplies are predicted to be exhausted by the middle of the next decade.
LNG is used to feed gas-fired power plants in the Philippines.
A subsidiary of Lopez Group, First Gen is a power generation and distribution company in the Philippines. The company owns around 60% of gas-fired power plants.
State-owned company Philippine National Oil (PNOC) previously sought a partner to develop an LNG hub in Batangas Bay.
However, PNOC’s scheduled meeting with potential investors for the hub was postponed twice delaying the project.
In August, First Gen said that PNOC rejected its proposal to be a part of the company’s LNG terminal project in Batangas.
