Tokyo Gas Co has signed a Joint Cooperation Agreement (JCA) with First Gen Corporation of the Republic of the Philippines. The two companies entered into a Joint Development Agreement on 5th December, 2018 and have been developing an Offshore LNG Terminal in Batangas City, Southern Luzon Island. With the JCA, the parties will transit to the construction of the Project, FSRU (Floating Storage & Regasification Unit), aiming to introduce LNG to the Philippines as early as in the second half of 2022.
Under the terms of the JCA, the two companies will jointly construct, operate and maintain an Offshore LNG Terminal which includes modify the existing jetty into a multi-purpose jetty and construct Onshore Gas Receiving Facilities. Tokyo Gas will take 20% participating interest of construction and operation of the project and cooperate with First Gen. The Department of Energy of the Republic of the Philippines has granted the permit to construct the Offshore LNG terminal on 23rd September, 2020.
Philippines will need to import LNG to feed existing power plants with capacity of about 3,200 MW as the Malampaya gas field in western Philippine waters is expected to run dry by 2027. First Gen is a power generation company of the Lopez Group and is the largest natural gas consumer in the Philippines with approximately 60% of the natural gas-fired power generation capacity in the country. Tokyo Gas states in its Group Management Vision “Compass 2030” that it will increase profits overseas by approximately 3 times by 2030 through business expansion at foreign countries.
Taking advantage of the technologies and know-how related to our comprehensive energy business, we will contribute to energy solutions for customers and to the construction of energy infrastructure, while also taking on the challenge of developing value chains in local countries through alliances with local energy companies.
