Tokyo Gas Co. Ltd. has signed an agreement with First Gen Corp. of the Philippines to begin construction of a 5-million tonne/year LNG terminal at Batangas City, Southern Luzon Island. The terminal will use a floating storage and regasification unit and the companies expect it to enter service second-half 2022.
The two companies will jointly construct, operate, and maintain the terminal, which includes modifying the existing jetty into a multi-purpose jetty and building onshore gas receiving infrastructure. Tokyo Gas will have a 20% participating interest in the terminal’s construction and operation.
The Department of Energy of the Philippines on Sept. 23, 2020, granted the permit to build the terminal. The two companies entered into a joint development agreement for the project on Dec. 5, 2018.
First Gen is a power generation company of the Lopez Group, which is one of the largest conglomerates in the Philippines, and is the largest natural gas consumer in the Philippines with about 60% of the gas-fired power generation capacity in the country, all in Batangas.
The deal is part of Tokyo Gas Group’s plans to triple overseas profits by 2030.
