Tokyo Gas Co. has bought a 20% stake in FGEN LNG Corporation which owns and operates an offshore floating LNG terminal in Batangas City, Southern Luzon Island, in the Philippines.
The terminal marks Tokyo Gas’ first investment in a commercially operational overseas LNG terminal and follows a 25-year permit issued in January, and joint development agreements signed in 2018 and 2020. First Gen LNG Holding Corporation will retain an 80% stake. Tokyo Gas will leverage its experience in LNG terminals to support the operation and maintenance.
Economic and population growth in the Philippines are expected to drive higher electricity demand and the Department of Energy has set a plan to increase LNG volumes as an additional energy source and transition fuel. Its 115.9m population is densely concentrated around major cities and clusters.
Tokyo Gas is committed to transforming LNG value chains under its Compass 2030 vision. In December it signed an MOU with Petroliam Nasional Berhad to explore carbon neutral technologies, covering studies on hydrogen production and carbon capture and storage.
Natural gas plays a significant role in the Philippines’ economy and energy sector, followed by industrial and transportation, with 98% of Philippines’ gas supply channelled into the power sector, according to Independent Commodity Intelligence Services (ICIS).
“Imported LNG has emerged as an option to fuel the country’s energy transition, backfilling the domestic supply gap and fulfilling fast-rising gas demand,” it notes.
The Philippines received 17 cargoes in 2024. Currently it has two receiving terminals – alongside Batangas, Philippines LNG, operated by Singapore’s AG&P, opened two years ago – and four more are scheduled to come on stream in the next two years, adding 10.72 million tonnes per annum regasification capacity, according to ICIS.
Read more: Philippines opens first LNG terminal
According to gasworld’s Business Intelligence, Philippines’ industrial gas market is worth $486m.
