Tokyo Gas completes purchase of 20% stake in First Gen’s LNG hub

MANILA, Philippines — Lopez-led First Gen Corp. has completed the sale of a 20-percent stake in its offshore liquefied natural gas (LNG) terminal in Batangas to Japan’s Tokyo Gas Co. Ltd.

First Gen unit First Gen LNG Holdings Corp. and Tokyo Gas executed share subscription and shareholder’s agreements in May 2024 involving FGEN LNG Corp., which owns and operates the LNG terminal.

With the deal’s closing, Tokyo Gas now owns 20 percent of FGEN LNG, with the First Gen Group retaining an 80-percent interest.

“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,” First Gen president and COO Francis Giles Puno said.

The acquisition marks Tokyo Gas’ first-ever investment in a commercially operational overseas LNG terminal, although financial details have yet to be disclosed.

Tokyo Gas is Japan’s largest natural gas utility company and is among the world’s largest buyers of LNG, with an annual volume of 13 million tons.

Before this transaction, First Gen partnered with Tokyo Gas in December 2018 to construct the LNG terminal, which was completed in 2023.

Recently, the Department of Energy granted FGEN LNG the permit to operate and maintain the LNG terminal for 25 years.

The project consists of a multi-purpose jetty and an onshore gas receiving facility representing the initial phase of the FGEN LNG terminal that was certified by the government as an energy project of national significance.

First Gen utilizes LNG for its four gas-fired power plants with a combined capacity of over 2,000 megawatts (MW) located at the First Gen Clean Energy Complex.

LNG is deemed a transition fuel to help the country shift away from coal-fired power plants while setting the stage for a wider adoption of renewable energy in the long term.

First Gen completed its first LNG cargo delivery in August 2023 and made subsequent deliveries in December 2023 as well as in February, May and October 2024.

A subsidiary of listed conglomerate First Philippine Holdings Corp., First Gen is the country’s largest producer of clean energy with over 3,600 MW of installed capacity in its portfolio.