Tokyo Gas seals First Gen LNG 20% buy-in deal
Tokyo Gas Co. Ltd, Japan’s largest natural gas utility company, officially entered the Philippine market with the acquisition of a 20-percent stake in the liquefied natural gas (LNG) terminal of Lopez-led First Gen Corp.
The deal was completed almost a year after Tokyo Gas had inked a subscription agreement with First Gen LNG Holdings in May last year, involving the purchase of a minority stake in FGEN LNG Corp.
FGEN LNG is the owner and operator of a LNG terminal at its parent company’s Clean Energy Complex in Batangas City.
The group said the finalization of the transaction marks the Japanese firm’s first investment in an LNG terminal abroad.
FirstGen, however, did not disclose the value of the acquisition when asked.
“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 decarbonization,” said Giles Puno, vice chair and CEO of FGEN LNG and concurrent First Gen president.
Late in 2018, both parties also teamed up for the construction of the LNG terminal.
Earlier this year, the group secured a permit from the Department of Energy to operate and maintain the offshore gas terminal for 25 years. It claimed the permit was the “first to be granted to an LNG facility in the Philippines.”
The facility was also tagged as an energy project of “national significance” before, allowing its developer to enjoy faster permitting processes.
The project is composed of a multipurpose jetty and an onshore gas receiving facility, representing the initial phase of the LNG terminal.
Currently, the listed energy producer is operating 28 power plants ranging from solar, wind, hydro and geothermal facilities that can generate up to 1,651 megawatts (MW) of electricity.
It also has a network of four gas-fired power plants in Batangas province: San Lorenzo, San Gabriel, Santa Rita and Avion gas plants. These facilities have an additional capacity of 2,017 MW.
