First Gen partners with Tokyo Gas for LNG plant

MANILA, Philippines — Lopez-led First Gen Corp. has partnered with Tokyo Gas Co. Ltd. to jointly develop its planned liquefied natural gas (LNG) terminal in its Batangas Clean Energy Complex.

In a disclosure to the Philippine Stock Exchange yesterday, First Gen said its wholly-owned subsidiary FGEN LNG Corp. signed a joint development agreement (JDA) with Tokyo Gas.

The JDA is a preliminary agreement between the parties to jointly pursue development of the LNG terminal project.

Under the deal, Tokyo Gas will take a 20 percent  participating interest in the FGEN LNG project and provide support in development work to achieve a final investment decision.

Once the FID is done, the parties will enter into a definitive agreement to proceed with the construction of the project.

First Gen president Giles Puno said Tokyo Gas is a world class natural gas and LNG company with vast experience in the development, financing, construction and operations of LNG storage and regasification facilities.

Tokyo Gas, headquartered in Tokyo, Japan, is a leading LNG player with 130 years of experience and more than 50 years of experience in the LNG business.

It is one of the largest purchasers of LNG in the world with an annual volume of 14 mtpa. It has over 63,000 kilometers of gas pipelines, serving more than 11 million customers.

“First Gen and Tokyo Gas share the common belief that the country needs clean natural gas to produce power which is not only cost-competitive, but given its flexible operations, is the perfect complement to a growing renewable energy industry,” Puno said.

“Finally, we both share the vision of the Department of Energy (DOE) in the implementation of LNG projects in the Philippines. First Gen and Tokyo Gas intend to cooperate with all relevant stakeholders who share the same vision to participate in making LNG viable for the Philippines,” he said.

Tokyo Gas president Takashi Uchida said First Gen is the leading company utilizing environmentally-friendly natural gas in the Philippines, and which has been contributing to realize a low carbon society.

First Gen, one of the biggest independent power producers and the leading gas power generation company in the Philippines with approximately 2,000 megawatts in operating gas assets composed of four gas-fired power plants – the 1,000 MW Santa Rita power plant, the 500 MW San Lorenzo power plant, the 414 MW San Gabriel power plant and the 97 MW Avion power plant.

“Tokyo Gas would like to be instrumental in introducing LNG to the Philippines by pursuing the FGEN LNG project and developing a safe and stable energy infrastructure system, taking advantage of its LNG expertise accumulated for half a century,” Uchida said.