Tokyo Gas, First Gen Plan Terminal in Philippines
Japanese utility, Tokyo Gas, has signed an agreement with the Philippines' First Gen Corporation to develop an LNG receiving terminal in the country, it said December 5.
First Gen is the Philippines' largest natural gas consumer and owns approximately 60% of gas-fired power plants in that country. This will be Tokyo Gas’ maiden foray into energy infrastructure development activity in the southeast Asian nation.
The Philippines government is encouraging global investors to build LNG infrastructure as it needs to keep its gas-fired generating assets viable – and attract new investment – after Malampaya, the country’s only commercial gas field, dries up in the next five to six years.
In addition to the Tokyo Gas-First Gen agreement, other deals have been signed this year. In June, Phoenix Petroleum, signed a Memorandum of Understanding with Cnooc Gas and Power, a unit of China’s Cnooc, to develop an LNG import terminal. In the same month South Korea's SK E&S signed a Letter of Intent (LoI) with the Philippines government for the construction of LNG infrastructure in the country worth $1.7bn.
Australia-listed Energy World Corporation (EWC) said in February that it has 90%-completed its 130,000 m3 capacity LNG hub terminal on Pagbilao Island in Quezon province, 90 km southeast of Manila; it will be capable of handling up to 3mn metric tons/yr of LNG.