LOPEZ-LED First Gen Corp. said it plans to develop more liquefied natural gas (LNG) terminals with Tokyo Gas Co. Ltd., a supplier of natural gas to Tokyo’s main cities.
“I think we’re very happy to work with Tokyo Gas to develop these kinds of projects in other locations outside of Batangas,” First Gen Executive Vice-President and Chief Commercial Officer Jonathan Charles Russell said on the sidelines of the company’s annual stockholder’s meeting on Friday.
Mr. Russell said that Tokyo Gas is “now excited to become a stakeholder,” as it has supported the company “all through the development and then the construction” of the Batangas LNG terminal.
“It’s part of Tokyo Gas’ plan to decarbonize countries in Southeast Asia. This is the first successful development for them. So I think they’re looking at this as a model for their businesses elsewhere,” he said.
Last month, First Gen’s subsidiary, First Gen LNG Holdings Corp. (FGEN LNG Holdings), finalized a shareholder’s agreement and share subscription agreement with Tokyo Gas. Tokyo Gas will acquire a minority stake in FGEN LNG through this arrangement.
FGEN LNG Holdings will hold an 80% share, with Tokyo Gas holding the remaining 20% in FGEN LNG.
FGEN LNG, which is fully owned by First Gen, manages the interim offshore terminal project situated within its parent company’s Clean Energy Complex in Batangas.
“So this was just really transitioning from essentially a collaboration where they’re advancing to becoming officially an equity holder in the First Gen LNG joint venture,” First Gen President and Chief Operating Officer Francis Giles B. Puno said.
As a gas player from Japan, Mr. Puno said that Tokyo Gas is “one of the largest and one of the ones with the highest reputation.”
“We’re hoping to collaborate with them in terms of how we can, in fact, improve our efficiencies, including procurement of gas,” Mr. Puno said
Meanwhile, First Gen is seeking bids for an LNG supply to be used by its gas-fired power plants in First Gen Clean Energy Complex.
The company, through its wholly owned subsidiary First Gen Singapore Pte. Ltd., intends to procure a single LNG cargo amounting to 125,000 cubic meters, according to a bid notice.
The LNG cargo will be delivered at the port located in the complex to be loaded into the BW Batangas, a floating storage regasification unit.
The announcement of the selected bidder will be made on June 11, with the delivery window starting from July 1 to July 5.
In April, First Gen awarded a contract to Chinese company CNOOC Gas and Power Trading & Marketing Ltd. following its fifth tender process for LNG cargo.
The company received a delivery of 130,000 cubic meters in May from CNOOC, which was its fourth LNG shipment contracted over the past 12 months.
First Gen currently operates four gas-fired power plants, totaling 2,017 megawatts in capacity. These plants have been receiving gas from the Malampaya field, which serves as the Philippines’ only natural gas source. — Sheldeen Joy Talavera
