Tokyo Gas acquired a 20% stake in FGEN LNG, operator of one of the Philippines’ two LNG terminals.The Batangas facility is its first overseas investment in an operational LNG terminal.Tokyo Gas previously aided its 2023 completion through agreements with First Gen, the 80% owner.Tokyo Gas will use its LNG expertise to support terminal operations.
The facility supplies First Gen’s 2,107 MW gas power plants.FGEN LNG CEO Giles Puno said the deal strengthens their partnership, supporting energy security and decarbonization.Tokyo Gas expects rising power demand in the Philippines due to economic and population growth.
Tokyo Gas aims to expand natural gas use and build an LNG value chain in the Philippines.President Marcos Jr. recently signed a law to develop a downstream gas industry and position the country as an LNG hub.The Philippine Natural Gas Industry Development Act promotes gas as a reliable power source while transitioning to renewables.The law promotes natural gas for non-power uses and prioritizes local gas over imports for energy security.
The Philippines, heavily reliant on coal, has only one active gas field, Malampaya, which is depleting. Shell exited in 2022.The DOE has approved multiple LNG import terminals; two were completed in 2023—FGEN LNG and AG&P, both in Batangas.
