Tokyo Gas, First Gen proceed with offshore LNG terminal plans in Philippines
Facility needed as exploration of Malampaya gas field comes to an end in 2027
Tokyo Gas has signed a joint cooperation agreement (JCA) with First Gen Corporation of the Philippines to move ahead with the construction and operation of an offshore LNG terminal in Batangas City. The two companies initially entered into a joint development agreement in December 2018.
In a disclosure to the Philippine Stock Exchange, First Gen said it signed a JCA with Tokyo Gas on October 6 2020. A final investment decision is to follow.
Under the terms of the JCA, the two companies will jointly construct, operate and maintain an offshore LNG terminal which includes modifying the existing jetty into a multi-purpose jetty, and constructing onshore gas receiving facilities. Tokyo Gas will have a 20% participating interest in the project and provide support in development, construction, operations and maintenance work to achieve a final investment decision.
The Philippines’ Department of Energy granted the permit to construct the offshore LNG terminal on September 23.
The facility is located near Batangas City on Southern Luzon island. The interim usage of a floating storage & regasification unit (FSRU) will enable the introduction of LNG to the Philippines as early as in the second half of 2022.
Imported LNG will be needed to supply existing power stations in the country as exploration of the Malampaya gas field comes to an end in 2027.
First Gen is part of the Lopez Group conglomerate, and is the biggest player in domestic natural gas fired power generation in the Philippines. Tokyo Gas is Japan’s biggest gas distributor. Under the company’s Compass 2030 strategy it has said that it plans to treble overseas profits by 2030.
Source: The Asset