Tokyo Gas ventures into Phl LNG market with FGEN stake
Officials of First Gen Corporation and Tokyo Gas Co. Ltd. celebrate Tokyo Gas’ acquisition of a 20% stake in FGEN LNG Corporation. Pictured (from left) are Victor Emmanuel B. Santos Jr., First Gen Executive Vice President; Toshihide Kasutani, Tokyo Gas Executive Vice President; Francis Giles B. Puno, First Gen President and COO; Emmanuel Antonio P. Singson, First Gen Executive Vice President, CFO, and Treasurer; and Vincent Martin Villegas, FGEN LNG President and COO. FGEN LNG, a First Gen subsidiary, operates an LNG terminal at the First Gen Clean Energy Complex in Batangas City. Tokyo Gas, Japan’s largest natural gas utility, makes its first overseas LNG terminal investment with the acquisition.
Photo courtesy of FGEN LNG.
Tokyo Gas ventures beyond Japan with its inaugural overseas investment in a commercially operational liquefied natural gas (LNG) terminal, securing a 20 percent equity stake in FGEN LNG Corp., a subsidiary of Lopez-led First Gen Corp.
FGEN LNG, which owns and operates the LNG terminal at the First Gen Clean Energy Complex in Batangas City, said on Wednesday that the investment was made through Tokyo Gas’ subscription to a minority stake in the company.
However, the company did not disclose the exact amount of investment.
“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 chairman and chief executive officer of FGEN LNG and concurrent president of First Gen.
Tokyo Gas, Japan’s largest natural gas utility company, signed a subscription agreement with First Gen LNG Holdings as early as May 2024, subject to several conditions, including securing government approvals.
The two companies have been working together since 2018 on the development and construction of the LNG terminal, which began operations in May 2019.
The facility was the first to receive a Permit to Operate and Maintain from the Department of Energy, supplying regasified LNG to First Gen’s gas-fired power plants with a total generating capacity of 2,017 megawatts.
LNG plays a critical role in the country's energy sustainability, with the DOE targeting a 26 percent share in the power generation mix by 2040.
As a cleaner alternative to traditional fossil fuels, LNG reduces greenhouse gas emissions, combats climate change, and improves air quality — making it a good transition fuel to a renewable energy future.