Tokyo Gas has acquired a 20% stake in FGEN LNG, the owner and operator of an offshore floating liquefied natural gas (LNG) terminal in Batangas City, Southern Luzon Island, Republic of the Philippines.
FGEN LNG is a subsidiary of renewable energy company First Gen.
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The LNG terminal secured an operate and maintain permit from the Department of Energy to supply regasified LNG to First Gen’s gas-fired power plants with a total generating capacity of 2,017MW.
The investment follows a series of agreements between Tokyo Gas and First Gen, including a joint development agreement signed in December 2018 and a joint cooperation agreement in October 2020, which facilitated the terminal’s development and construction.
FGEN LNG vice-chairman and CEO First Gen president Giles Puno said: “We welcome Tokyo Gas into the First Gen group. This subscription will deepen our partnership and enhance synergy that will boost our efforts in support of the Philippines’ energy security and stability, even as we all pursue decarbonisation.”
Tokyo Gas plans to leverage its experience in LNG terminal operations to support the terminal’s operation and maintenance.
The Philippines is experiencing robust economic growth and a rising population, which is expected to increase electricity demand.
The Department of Energy has set plans to increase LNG volume as a stable power supply and transition fuel.
Tokyo Gas aims to contribute to the expansion of natural gas utilisation and the establishment of an LNG value chain in the Philippines.
Tokyo Gas Group is dedicated to transforming the LNG value chain, as outlined in its management vision Compass 2030.
The company plans to expand its LNG infrastructure business to contribute to the development of Asian countries and low carbonisation.
