First Gen keen on more LNG terminals

MANILA, Philippines — Lopez-led First Gen Corp. is setting its sights outside Batangas to build new liquified natural gas (LNG) terminals with Japanese partner Tokyo Gas Co. Ltd.

The listed firm, through subsidiary FGEN LNG Corp., owns and operates the interim offshore terminal project in Batangas City, the construction of which was aimed at ensuring fuel for natural gas plants.

“I think we’re very happy to work with Tokyo Gas to develop these kinds of projects in other locations outside of Batangas,” First Gen EVP and chief commercial officer Jonathan Charles Russell said.

The Japanese company is keen on expanding its partnership with First Gen following the “successful development” of the Batangas LNG import terminal, Russel said.

“It’s part of Tokyo Gas’ plan to help decarbonize countries in Southeast Asia… so I think they’re looking at this (Batangas terminal) as a model for their businesses elsewhere.”

Among the largest purchasers of LNG in the world, Tokyo Gas recently executed share subscription and shareholders’ agreements with First Gen LNG Holdings Corp. to acquire a 20-percent stake in FGEN LNG.

Francis Giles Puno, First Gen president and COO, said the latest transaction is expected to help the power producer improve, its efficiencies, including the procurement of gas.

First Gen received its first LNG cargo delivery at Subic in August last year and completed subsequent deliveries of LNG cargoes in its Batangas complex in December 2023 as well as in February and May 2024.

It has also issued a tender for the procurement and delivery of another single LNG cargo by July this year.

For 2024, the company has programmed capital spending of $1.27 billion, or about P74.3 billion, to continue bulking up its renewable energy and natural gas portfolio.

First Gen is also investing P29.3 billion to bring to commercial operation seven new power facilities—four geothermal and three battery energy storage system projects—toward the end of the year.

Upon completion, the firm’s total installed generation capacity from renewable energy and natural gas plants is poised to reach 3,722 megawatts.