Tokyo Gas Invests in Philippine LNG Terminal to Expand Southeast Asian Operations

Tokyo Gas Co., Ltd. has taken a significant step into the Southeast Asian energy market by acquiring a 20% stake in FGEN LNG Corporation, the owner and operator of the Philippines' first offshore floating liquefied natural gas (LNG) terminal located in Batangas City. This investment marks Tokyo Gas's inaugural venture into a commercially operational overseas LNG terminal project, as the company seeks to broaden its LNG infrastructure across the region.

The floating storage and regasification unit (FSRU) at the Batangas terminal, which is crucial for bolstering the Philippines' energy security, is expected to play a pivotal role as the country's Malampaya gas field is projected to be depleted by 2027. The terminal has already been recognized as an “Energy Project of National Significance” by the Energy Investment Coordination Council, according to reports from the Department of Energy (DOE).

“This subscription will deepen our partnership and enhance synergy that will boost our efforts in support of the Philippines’ energy security and stability.”Giles Puno, Vice Chairman and CEO of FGEN LNG and concurrent First Gen President

First Gen Corporation, the parent company of FGEN LNG, has emphasized the importance of this partnership. Giles Puno, Vice Chairman and CEO of FGEN LNG and concurrent First Gen President, said Tokyo Gas's subscription will deepen their partnership and enhance synergy to boost efforts in support of the Philippines’ energy security and stability, even as they pursue decarbonization.

“This investment allows us to support the expansion of natural gas utilization and contribute to the establishment of an LNG value chain in the Philippines.”Tokyo Gas statement

The FGEN LNG terminal, which received its Permit to Operate and Maintain in January 2025, is designed to facilitate the introduction of natural gas into the Philippines' energy mix, thereby supporting First Gen’s four natural gas-fired power plants. The facility features a multi-purpose jetty and an onshore gas receiving facility, integral to the country's transition towards a low-carbon economy.

Tokyo Gas's strategy aligns with its broader management vision, “Compass 2030,” which aims to expand its LNG infrastructure business throughout Asia. The company has previously collaborated with First Gen through a Joint Development Agreement initiated in 2018, which laid the groundwork for the terminal's development.