Japan’s Tokyo Gas Completes Acquisition of Interest in FGEN LNG Corporation
Japan’s leading gas utility provider, Tokyo Gas, has recently finalized the acquisition of a stake in FGEN LNG Corporation, a subsidiary of First Gen Corporation in the Philippines. FGEN LNG owns and operates an offshore floating liquefied natural gas (LNG) terminal in Batangas City, solidifying Tokyo Gas’ first investment in an operational overseas LNG terminal project.
The acquisition, which involved Tokyo Gas subscribing to a 20% ownership in FGEN LNG, marks a significant milestone in the partnership between the two companies. Giles Puno, Vice Chairman and CEO of FGEN LNG and President of First Gen, expressed enthusiasm about the collaboration, emphasizing the mutual commitment to energy security, stability, and decarbonization in the Philippines.
The subscription agreement between Tokyo Gas and First Gen LNG Holdings was formalized in May 2024, subject to regulatory approvals. This strategic move aligns with FGEN LNG’s goal to enhance the country’s energy landscape amidst challenges such as the potential depletion of the Malampaya gas field by 2027.
As part of the partnership, FGEN LNG, in conjunction with Tokyo Gas, established an interim offshore LNG terminal and secured a TCP agreement for the FSRU BW Batangas, which was deployed in June 2023. This initiative aims to expedite the adoption of natural gas in the Philippines, supporting First Gen’s gas-fired power plants with a total capacity of 2,017 megawatts.
Recognized as a crucial component of the country’s energy security infrastructure, the offshore LNG terminal received operational approval from the Department of Energy in January 2025, solidifying its status as the first LNG facility in the Philippines to receive such accreditation.