First Gen LNG Holdings Corp., a wholly owned subsidiary of Lopez-led First Gen Corp., said Wednesday it executed a shareholders’ agreement (SHA) and share subscription agreement (SSA) with Tokyo Gas Co. Ltd.
First Gen said in a disclosure to the stock exchange that under the SHA and SSA, Tokyo Gas will subscribe for shares and become a shareholder in FGEN LNG Corp., the owner and operator of the interim offshore terminal project in Batangas City.
First Gen and Tokyo Gas signed a joint development agreement for the IOT project in December 2018.
“The execution of the SHA and SSA represents the next phase of the parties’ joint development of the project,” the company said.
The SHA will govern the rights of FGEN LNG Holdings and Tokyo Gas with respect to the ownership and operations of the IOT project.
The SHA is conditioned upon several conditions precedent, including the procurement of relevant government approvals.
First Gen said that once effective, FGEN LNG Holdings will have an 80-percent shareholding, while Tokyo Gas will have a 20-percent shareholding in FGEN LNG.
FGEN LNG is a wholly-owned subsidiary of First Gen, one of the biggest independent power producers in the country and the leading gas power generation company in the Philippines with approximately 2,000 MW in operating gas assets.
Tokyo Gas, headquartered in Tokyo, Japan, is a leading LNG player with more than 130 years of experience and more than 50 years of experience in the LNG business.
Tokyo Gas is one of the largest purchasers of LNG in the world with an annual volume of 13 metric tons per annum (MTPA). It has over 63,000 kilometers of gas pipelines serving about 8.8 million customers.