Japan’s city gas supplier and LNG importer, Tokyo Gas, has entered into a deal to buy a 20 percent stake in First Gen LNG, a unit of First Gen and the operator of the FSRU-based terminal in Batangas, Philippines.
According to First Gen, FGEN LNG and Tokyo Gas executed a shareholders’ agreement and share subscription agreement on May 21.
Under the SHA and SSA, Tokyo Gas will subscribe for shares and become a shareholder in FGEN LNG, the owner and operator of the interim offshore terminal project located in First Gen’s energy complex in Batangas City.
First Gen said the execution of the SHA and SSA represents the next phase of the parties’ joint development of the project.
It did not reveal any additional information regarding the deal.
The agreement remains subject to a number of conditions precedent, including securing relevant government approvals.
Back in 2020, First Gen, controlled by the Lopez family, singed a joint cooperation deal with Tokyo Gas for the Batangas LNG import terminal in the Philippines, and this deal included Tokyo Gas buying a 20 percent stake in the project.
First Gen said at the time the parties would enter into a definitive agreement after a final investment decision.
This deal followed the joint development agreement which initially governed the duo’s relationship since December 5, 2018.
CNOOC delivers LNG to Batangas FSRU
In April, First Gen awarded a contract to a unit of China’s state-owned energy giant CNOOC to supply one LNG cargo to its FSRU-based terminal in Batangas.
First Gen said that CNOOC Gas and Power Trading & Marketing will supply one LNG cargo of about 130,000 cbm in May on a DES basis to the company’s unit, FGEN Singapore.
According to its AIS data provided by VesselsValue, the 2014-built 160,000-cbm, Kool Frost, owned by CoolCo, delivered this cargo to the 162,000-cbm FSRU BW Batangas earlier this week.
The LNG carrier visited in April the Australia Pacific LNG export terminal on Curtis Island near Gladstone, the data shows.
First Gen will use the supplies for its existing gas-fired power plants, also located in the complex.
The company has a portfolio of four gas-fired power plants with a combined capacity of 2,017 MW that have been supplied for many years with gas from the Malampaya offshore gas field.
It is now buying LNG to replace declining volumes from the Malampaya gas field.
Four cargoes
The FSRU has now received in total four LNG cargoes.
LNG giant Shell suppled the first LNG cargo for commissioning purposes to First Gen’s FSRU-based LNG terminal in August last year.
Shell delivered the LNG cargo from Australia onboard the 2021-built 174,000-cbm, LNGShips Manhattan.
Moreover, First Gen selected Trafigura to supply the second LNG cargo and the energy trader supplied the cargo with the 2021-built 174,000-cbm LNG carrier, Hellas Diana, owned by Latsco and chartered by Trafigura.
TotalEnergies Gas & Power Asia, a unit of French energy giant TotalEnergies won a tender to supply the third cargo in December.
The 2020-built 174,000-cbm LNG carrier, Qogir, owned by TMS Cardiff Gas and chartered by TotalEnergies, delivered the third LNG cargo to the FSRU from the Inpex-operated Ichthys LNG plant in Australia.
As per the FSRU, First Gen awarded in 2021 the five-year FSRU contract to BW LNG.
BW Batangas arrived in the Philippines in June last year to start serving First Gen’s LNG import terminal developed by its unit FGEN LNG.
This is the second LNG import facility in the Philippines as AG&P kicked off commissioning activities in Apriil 2023 at the country’s first import terminal following the arrival of the 137,500-cbm FSU Ish at the terminal’s jetty in Batangas Bay.