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The two companies, which have been considering the alliance on the project since 2018, plan to build and operate a Floating Storage and Regasification Unit (FSRU) near the city of Batangas and the onshore gas receiving facilities, with the aim of introducing LNG in the Philippines asap. as in the second half of 2022.
The Philippine government approved the First Gen LNG terminal project, along with three other projects.
The Southeast Asian country will need to import LNG to power existing power plants with a combined capacity of about 3,200 megawatts (MW), as the Malampaya gas field in western Philippine waters is expected to dry up by 2027.
Under the latest agreement, Tokyo Gas will have a 20% stake in the construction and operation of the project, the company said, declining to give an estimate of the construction cost.
First Gen is a power generation company of Grupo López, one of the largest conglomerates in the Philippines, and is the largest consumer of natural gas in the country, with close to 60% of the gas power generation capacity.
Based on the long-term vision presented last year, Tokyo Gas aims to triple its overseas profits by 2030 to represent 25% of its total operating profit.
(Reporting by Yuka Obayashi, editing by Louise Heavens)
