First Gen, Japanese partner break ground for LNG terminal project in Batangas

Lopez-led First Gen Corporation and its Japanese partner Tokyo Gas Co. Ltd. on Tuesday broke ground for its liquefied natural gas (LNG) terminal project in Batangas City.

In a disclosure to the local bourse, First Gen said its wholly-owned unit First Gen LNG Corp. held a "kagami biraki" ceremony for the groundbreaking of the LNG terminal project.

"FGen LNG has now completed significant pre-development work for its planned LNG receiving terminal located at FGCEC (First Gen Clean Energy Complex) in Batangas City, to make the project site 'construction ready'," First Gen said.

"Once completed, the LNG terminal will allow the country to import liquefied natural gas and ensure a continuing stable supply of clean energy once the Malampaya gas field is depleted. The LNG terminal project could possibly be the most significant energy infrastructure project to be undertaken in the Philippines in more than two decades," it said. 

Kagami biraki, which means “opening the mirror," is a traditional Japanese ceremony originating in acts said to have been performed by samurai in centuries past, and involves opening a barrel of sake with mallets.

“A kagami biraki ceremony is held to mark the start of something new, as symbolized by the act of breaking open a round sake barrel, representing harmony and good luck. It is then considered that the transition has taken place,” said Kunio Nohata, member of the Board, senior managing executive officer, and chief executive of the Global Gas Division of Tokyo Gas.

First Gen signed a joint development agreement with Tokyo Gas on December 5, 2018.

The agreement is a preliminary agreement between the parties to jointly pursue development of FGen LNG Corp.’s LNG terminal project in Batangas City.

“Given the joint development agreement between Tokyo Gas and First Gen, we consider that the holding of a kagami biraki ceremony is an appropriate way for First Gen and Tokyo Gas to celebrate our collaboration, the completion of the significant pre-development work, and the commencement of the next phase of the development of the project,” said First Gen chairman and CEO Federico  Lopez.

FGen LNG believes the new terminal will play a critical role in ensuring the country's energy security and will encourage both industrial and transport industries to consider LNG as a replacement to more costly and polluting fuels.

FGen LNG Corp. is a wholly owned subsidiary of First Gen, one of the biggest independent power producers in the country and the leading gas power generation company in the country with approximately 2,000 MW in operating gas assets composed of four gas-fired power plants: the 1,000 MW Santa Rita Power Plant, the 500 MW San Lorenzo Power Plant, the 414 MW San Gabriel Power Plant and the 97 MW Avion Power Plant.

Tokyo Gas, headquartered in the Japanese capital, is a leading LNG player with 130 years of experience and more than 50 years of experience in the LNG business.

Tokyo Gas is one of the largest purchasers of LNG in the world with an annual volume of 14 metric tons per annum. It has over 63,000 kilometers of gas pipelines serving more than 11 million customers. — BM, GMA News