Tokyo Gas to acquire 20% stake in Philippines' First Gen LNG
Manila-listed First Gen Corp. announced on May 22 that Japan’s Tokyo Gas will acquire a 20% stake in its subsidiary, First Gen LNG (Fgen LNG).
Fgen LNG has signed a shareholders’ agreement (SHA) and share subscription agreement (SSA) with Tokyo Gas. According to these agreements, Tokyo Gas will subscribe for shares and become a shareholder in Fgen LNG, which owns and operates the interim offshore LNG import terminal project located at First Gen’s Clean Energy Complex in Batangas City.
The SHA will become effective upon the fulfillment of several conditions precedent, including obtaining necessary government approvals. Once effective, FGEN LNG Holdings will hold an 80% stake, while Tokyo Gas will hold a 20% stake in Fgen LNG. First Gen did not disclose the value of the deal.
FGEN operates a portfolio of four gas-fired power plants with a combined capacity of 2.01 GW. These plants have relied on the Malampaya field for many years. The company believes the LNG project will play a critical role in ensuring the energy security of the Luzon grid and the Philippines, particularly as the indigenous Malampaya natural gas resource is expected to decline in the next few years.
FGEN LNG has executed a five-year time charter party for the BW Batangas, which will provide LNG storage and regasification services for the project. BW Batagangas was earlier called BW Paris. FGEN LNG and BW LNG executed a five-year deal in 2021 for the charter of BW Paris.
The terminal got its inaugural LNG cargo last year. Shell Eastern LNG supplied one LNG cargo of approximately 154,500 m3 to FGEN's subsidiary, First Gen Singapore.