Tokyo Gas Co. Ltd., Japan’s largest natural gas utility company, said it completed the acquisition of a 20-percent equity ownership in FGEN LNG Corp., a subsidiary of First Gen Corp. that owns and operates a $370-million liquefied natural gas (LNG) terminal project at the First Gen Clean Energy Complex in Batangas City.
The acquisition, Tokyo Gas’ first investment in a commercially operational overseas LNG terminal project, was made by way of a subscription to a 20-percent ownership in FGEN LNG.
“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 FGEN LNG vice chairman and chief executive and concurrent First Gen president Giles Puno in a statement.
Tokyo Gas said in a separate statement it would leverage its extensive expertise in the optimal operation of LNG terminals, accumulated over many years in Japan, to support the operation and maintenance of the LNG terminal.
By participating in the LNG terminal project, Tokyo Gas aims to contribute to the expansion of natural gas utilization and the establishment of an LNG value chain in the country.
Tokyo Gas, a company founded in 1885 and based in Minato, Tokyo, signed a subscription agreement with First Gen LNG Holdings in May 2024 for the Japanese company’s minority stake in FGEN LNG.
The agreement was tied to a number of conditions precedent, including the procurement of relevant government approvals.
Tokyo Gas previously signed a joint development agreement with First Gen in December 2018 and a joint cooperation agreement in October 2020. These agreements facilitated the development and construction of the LNG terminal.
The FGEN LNG terminal broke ground in May 2019 and was granted a permit to operate and maintain an LNG facility in the Philippines, supplying regassified LNG to First Gen’s gas-fired power plants with a total generating capacity of 2,017 megawatts.