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First Gen. Corp., which is publicly traded, and Japan’s Tokyo Gas Co. Ltd. They have signed an agreement for the development of a long-planned liquefied natural gas (LNG) terminal in the city of Batangas, Batangas province.
The Lopez-led firm said in a disclosure Wednesday that it and Tokyo Gas have signed a joint cooperation agreement (JCA) that represents the next phase of their joint development of an interim offshore LNG terminal.
First Gen is developing the facility, located at its Clear Energy Complex in the capital of Batangas, through the FGEN LNG Corp. unit.
“With the JCA, the parties will now move from the development phase under the joint development agreement (JDA), which initially governed the relationship of First Gen and Tokyo Gas from December 5, 2018,” the company said.
The JCA is a preliminary agreement between the parties to jointly pursue the design, development, testing, commissioning, construction, ownership and operation and maintenance of the project, which consists of the construction works necessary to modify the existing jetty into a multipurpose one and construct an adjoining onshore gas receiving facility.
Under this agreement, Tokyo Gas will have a 20 percent stake in the project and will provide support in development, construction, operation and maintenance works to achieve a final investment decision (FID).
Once that decision is made, the two firms will sign a final agreement on the project.
In a separate disclosure, First Gen said McConnell Dowell Philippines was chosen as the preferred bidder for the engineering, procurement and construction (EPC) of the terminal.
First Generation Executive Vice President and Chief Commercial Officer Jonathan Russell said the company was expected to finalize the documentation and execute the EPC contract with McConnell Dowell in the coming days.
The construction is subject to the construction, expansion, rehabilitation and modification permit (PCERM) granted by the Department of Energy (DoE) on September 25.
First-generation stocks rose 10 cents or 0.43 percent to end at P23.60 each on Wednesday.
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