First Gen Corp. subsidiary FGEN LNG Holdings Corp. has executed a shareholders’ agreement (SHA) and share subscription agreement (SSA) with Japanese firm Tokyo Gas Co. Ltd.
In a disclosure to the Philippine Stock Exchange yesterday, First Gen said under the SHA and SSA signed on Tuesday, Tokyo Gas will subscribe shares to be a shareholder in FGEN LNG Corp. which owns and operates the interim offshore liquefied natural gas (LNG) terminal project in Batangas City.
“The execution of the SHA and SSA represents the next phase of the parties’ joint development of the project. In particular, the SHA will govern the rights of FGEN LNG Holdings and Tokyo Gas with respect to the ownership and operations of the project,” said First Gen, in a statement.
Once effective, FGEN LNG Holdings will have an 80 percent shareholding while Tokyo Gas will have a 20 percent shareholding in FGEN LNG.
Tokyo Gas is one of the largest purchasers of LNG in the world with an annual volume of 13 million tons per annum
First Gen, as a power generation company, has a combined capacity of 3,666 megawatts (MW) with a portfolio utilizing natural gas, geothermal, hydroelectric, wind and solar power technologies.
The company also aims to grow its total capacity to 13,000 MW in the next six years and spend as much as $20 billion until 2030.
