Tokyo Gas acquires 20% in First Gen's liquefied natural gas unit

Japan's largest natural gas utility Tokyo Gas Co. Ltd (Tokyo Gas) has completed its acquisition of a stake in Lopez-led First Gen Corp.'s (First Gen) liquefied natural gas (LNG) unit.

In a disclosure to the Philippine Stock Exchange on Wednesday, First Gen said Tokyo Gas' first investment in a commercially operational overseas LNG terminal project was made through subscription to a 20% ownership in FGEN LNG Corp.

FGEN LNG is the owner and operator of an LNG terminal project at the First Gen Clean Energy Complex in Batangas City.

"We welcome Tokyo Gas into the First Gen group. 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," said Giles Puno, vice chairman and CEO of FGEN LNG and concurrent president of First Gen.

To recall, Tokyo Gas signed a subscription agreement with First Gen LNG Holdings in May 2024 for its acquisition of a minority stake in FGEN LNG.

The agreement was tied to a number of conditions, which included completion of relevant government approvals.

Prior to its subscription of a stake in FGEN LNG, First Gen said Tokyo Gas has partnered with the company since December 2018 for the development and construction of the LNG terminal in Batangas, which broke ground in May 2019.

The Department of Energy (DOE) granted a permit to operate and maintain to LNG Terminal—the first to be granted to an LNG facility in the Philippines, supplying regasified LNG to First Gen's gas-fired power plants with a total generating capacity of 2,017 megawatts, according to First Gen. — VDV, GMA Integrated News