Japan’s Energy Giant Takes a Leap into Southeast Asia
Tokyo Gas, Japan’s leading gas utility provider, has just made a groundbreaking move in the global energy sector. The company has finalized its acquisition of a 20% stake in FGEN LNG Corporation, a subsidiary of the Philippines’ First Gen Corporation. This marks Tokyo Gas’s first-ever investment in a commercially operational overseas liquefied natural gas (LNG) terminal, signaling a strategic push into Southeast Asia’s rapidly evolving energy landscape.
The deal, completed through a subscription agreement, solidifies Tokyo Gas’s role in the Philippines’ energy future. The FGEN LNG terminal, located in Batangas City, is a floating storage and regasification unit (FSRU) that has been operational since June 2023. This partnership not only strengthens ties between the two companies but also underscores a shared commitment to energy security and decarbonization.
A Game-Changer for Philippine Energy Security
The Philippines has long relied on its Malampaya gas field, but with predictions of depletion by 2027, the country is racing to secure alternative energy sources. Enter the FGEN LNG terminal, a critical piece of infrastructure designed to fast-track the introduction of natural gas into the nation’s energy mix.
The terminal, which received its operating permit from the Department of Energy (DOE) in January 2025, is already fueling First Gen’s four natural gas-fired power plants. Together, these plants boast a combined capacity of 2,017 megawatts, providing a significant boost to the country’s energy grid.
“This partnership with Tokyo Gas is a milestone for us,” said Giles Puno, Vice Chairman and CEO of FGEN LNG. “It enhances our ability to support the Philippines’ energy security while advancing our decarbonization goals.”
A Partnership Built on Synergy and Sustainability
The collaboration between Tokyo Gas and First Gen isn’t just about energy supply—it’s about innovation and sustainability. The five-year time charter party (TCP) agreement for the FSRU BW Batangas highlights the companies’ commitment to leveraging cutting-edge technology to meet growing energy demands.
As the world transitions to cleaner energy sources, this partnership positions both Tokyo Gas and First Gen as key players in the global push for decarbonization. By combining their expertise, they aim to create a model for sustainable energy infrastructure that other nations can follow.
