First Gen Corp. of the Lopez Group and Tokyo Gas Co., Ltd. are studying expanding their liquefied natural gas (LNG) partnership to include LNG procurement and the possibility of building new terminals.
“Throughout the construction phase, Tokyo Gas was there advancing their share. So, this was just really transitioning from essentially a collaboration where they’re advancing to becoming officially an equity holder in the First Gen LNG joint venture,” First Gen president and chief operating officer Francis Giles Puno said.
Puno said the two companies are looking at areas of collaboration such as LNG supply sourcing.
“Obviously, they’re one of the largest. As a gas player from Japan, they’re one of the largest and one of the ones with the highest reputation known globally. So, we’re hoping to collaborate with them in terms of how we can, in fact, improve our efficiencies, including procurement of gas,” Puno said.
First Gen LNG Holdings Corp., a wholly-owned subsidiary of First Gen, executed a shareholders’ agreement (SHA) and share subscription agreement (SSA) with Tokyo Gas Co. Ltd.
Tokyo Gas will subscribe to shares and become a shareholder in FGEN LNG Corp., the owner and operator of the interim offshore terminal (IOT) project in Batangas City.
Tokyo Gas of Japan is a leading LNG player with more than 50 years of experience in the LNG business.
First Gen executive vice president and chief commercial officer Jon Russell said Tokyo Gas supported the company throughout the development and construction of the IOT project.
“It’s part of Tokyo Gas’ plan to help decarbonize countries in Southeast Asia. This is the first successful development for them. So, I think they’re looking at this as a model for their businesses elsewhere. But I think they’d be keen to grow with us,” Russell said.
“In order to support the development that Mr. Puno described earlier; we’re going to need more terminals of this kind. So, I think we’re very happy to work with Tokyo Gas to develop these kinds of projects in other locations outside of Batangas,” he said.
First Gen and Tokyo Gas signed a joint development agreement for the IOT project in December 2018.
Once the agreements become effective, FGEN LNG Holdings will have 80-percent shareholdingd, while Tokyo Gas will get 20 percent 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 about 2,000 MW in operating gas assets.
