Tokyo Gas finalizes Philippine LNG terminal stake buy

Japan’s gas utility provider Tokyo Gas has completed the acquisition of an interest in FGEN LNG Corporation (FGEN LNG), a subsidiary of Philippine utility First Gen Corporation (First Gen), which owns and operates an offshore floating liquefied natural gas (LNG) terminal in Batangas City, the Philippines.

Described as the Japanese player’s first investment in a commercially operational overseas LNG terminal project, the acquisition was made by way of a subscription by Tokyo Gas to a 20% ownership in FGEN LNG.

“We welcome Tokyo Gas into the First Gen group. This subscription will deepen our partnership and enhance synergy that will boost our efforts in support of the Philippines’ energy security and stability, even as we all pursue decarbonization,” said Giles Puno, Vice Chairman and Chief Executive Officer of FGEN LNG and concurrent First Gen President.

A subscription agreement between Tokyo Gas and First Gen LNG Holdings for a minority stake in FGEN LNG was signed in May 2024. The deal was conditional upon several requirements, including the procurement of relevant government approvals.

FGEN LNG built an interim offshore LNG terminal in partnership with Tokyo Gas and signed a five-year time charter party (TCP) agreement for the floating storage and regasification unit (FSRU) BW Batangas, which arrived on site in June 2023.

The interim terminal aims to speed up the introduction of natural gas to the Philippines, especially since predictions suggest the country’s Malampaya field could be depleted by 2027. 

The terminal is, thus, considered a key factor in ensuring the country’s energy security as it fuels First Gen’s four natural gas-fired power plants with a combined capacity of 2,017 megawatts.

In January 2025, the terminal became the first LNG facility in the Philippines to receive a permit to operate and maintain from the country’s Department of Energy (DOE).