First Gen, Tokyo Gas partner for LNG plant terminal project

By Lenie Lectura - December 6, 2018

https://businessmirror.com.ph/first-gen-tokyo-gas-partner-for-lng-plant-terminal-project/

LOPEZ-LED First Gen Corp. announced  on Wednesday its partnership with Tokyo Gas Co. Ltd. for the liquefied natural gas (LNG) project to be located within the Lopez Group’s clean-energy complex which houses its other gas plants.

Both signed a Joint Development Agreement to pursue development of FGen’s LNG terminal project to be developed by its unit FGEN LNG Corp. and Tokyo Gas, which will take a 20-percent participating interest in said project. Tokyo Gas is also expected to provide support in development work to achieve a Final Investment Decision. Upon reaching FID under the JDA, the parties will enter into a definitive agreement to proceed with the construction of the FGEN LNG Project.

“First Gen is excited to partner with Tokyo Gas, a world-class natural gas and LNG company with vast experience in the development, financing, construction and operations of LNG storage and regasification facilities.

First Gen and Tokyo Gas share the common belief that the country needs clean natural gas to produce power, which is not only cost-competitive but, given its flexible operations, is the perfect complement to a growing renewable-energy industry.

“We both share the vision of the Department of Energy in the implementation of LNG projects in the Philippines. First Gen and Tokyo Gas intend to cooperate with all relevant stakeholders who share the same vision to participate in making LNG viable for the Philippines,” First Gen President Giles B. Puno said.

In previous interviews, First Gen official said the planned LNG terminal will have a capacity to supply a minimum 5 million tons of natural gas equivalent to 5,000 megawatts (MW) and is targeted for construction next year. It is envisioned that the $1-billion facility will be finished in four years.

First Gen is one of the biggest independent power producers in the country and the leading gas power generation company in the Philippines with approximately 2,000 MW in operating gas assets composed of four gas-fired power plants—the 1,000-MW Santa Rita Power Plant, the 500-MW San Lorenzo Power Plant, the 414-MW San Gabriel Power Plant and the 97-MW Avion Power Plant.

Tokyo Gas, headquartered in Tokyo, Japan, is a leading LNG player with 130 years of experience and more than 50 years of experience in the LNG business. It is one of the largest purchasers of LNG in the world with an annual volume of 14 metric tons. It has over 63,000 kilometers of gas pipelines serving more than 11 million customers.

“Tokyo Gas is pleased and delighted to have signed the agreement with First Gen, the leading company utilizing environmentally friendly natural gas in the Philippines, and which has been contributing to realize a low-carbon society. Tokyo Gas would like to be instrumental in introducing LNG to the Philippines by pursuing the FGEN LNG Project and developing a safe and stable energy infrastructure system, taking advantage of its LNG expertise accumulated for half a century,” said Takashi Uchida, president of Tokyo Gas Co. Ltd.

The Philippine government has determined that LNG represents vital national infrastructure needed to maintain and enhance the country’s energy security when the Malampaya gas field is eventually depleted.