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Tokyo Gas, First Gen to build offshore LNG terminal in Philippines

Published 10/07/2020, 05:36 PM
Updated 10/07/2020, 05:40 PM
© Reuters.
9531
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FGEN
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TOKYO, Oct 7 (Reuters) - Japan's biggest city gas
distributor Tokyo Gas Co Ltd 9531.T said on Wednesday it and
the Philippines' First Gen Corp FGEN.PS have agreed to build
an offshore liquefied natural gas (LNG) terminal on Luzon island
in the Philippines.
The two companies, which have been considering the alliance
in the project since 2018, plan to construct and operate a
Floating Storage & Regasification Unit (FSRU) near Batangas City
and onshore gas receiving facilities, with an aim to introduce
LNG to the Philippines as early as in the second half of 2022.
The Philippine government has approved First Gen's LNG
terminal project, along with three other projects.
The Southeast Asian country will need to import LNG to feed
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 run dry by 2027.
Under the latest agreement, Tokyo Gas will take a 20%
participating interest in the construction and operation of the
project, the company said, declining to give an estimate of
construction cost.
First Gen is a power generation company of the Lopez Group,
one of the largest conglomerates in the Philippines, and is the
largest natural gas consumer in the country, holding about 60%
of gas-fired power generation capacity.
Under the long-term vision unveiled last year, Tokyo Gas is
targeting to triple its overseas profits by 2030 to account for
25% of its total operating profit.

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