Tokyo Gas, First Gen to begin building Philippines LNG terminal

Tokyo Gas Company Ltd has signed an agreement with First Gen Corporation. of the Philippines to begin construction of a five-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.

On the 23^rd September, the Department of Energy of the Philippines granted the permit to build the terminal. The two companies entered into a joint development agreement for the project on the 5^th December 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.

Source: Oil & Gas Journal