Tokyo Gas Co and First Gen. have secured the Philippine government’s approval for its liquified natural gas (LNG) project with First Gen Corp.
First Gen said it was waiting the Department of Energy’s (DOE) approval for it to begin the natural gas project with Tokyo Gas.
The company said its unit, FGEN LNG Corp, applied for a notice last March 8 to proceed with construction of an LNG terminal in Batangas City.
The Japanese firm has plans to have a 20 percent share of the project, which will commence operation in 2023, Tokyo Gas spokesman Noriyoshi Ibara told NNA Japan news.
The two firms submitted their LNG development plans to the DOE last December.
Director of the energy department’s oil industry and management bureau said that the proposed project will have a yearly capacity of 5.26 million tons. Investments costs around $10 billion, according to local media.
The Tokyo Gas-First Gen venture is the largest among other approved LNG hub development projects, in terms of capacity size.
Considered as one of the nation’s largest natural gas buyers, First Gen decided to develop and construct the said gas import terminal as local supplies are expected to become depleted by 2024.
First Gen operates other four gas-fired power plants sourced from the Malampaya gas field off the coast of Palawan Island.