LOPEZ-LED First Gen Corp.’s subsidiary has inked agreements with Tokyo Gas Co., Ltd. to finalize the latter’s acquisition of a 20% stake in FGEN LNG Corp., it said on Wednesday.
First Gen LNG Holdings Corp. (FGEN LNG Holdings) executed a shareholders’ agreement and share subscription agreement with Tokyo Gas, which will acquire a minority stake in FGEN LNG, the listed company said in a regulatory filing.
“Once effective, FGEN LNG Holdings will have an 80% shareholding, while Tokyo Gas will have a 20% shareholding, in FGEN LNG,” First Gen said.
The energy company said the effectivity of the shareholders’ agreement “is conditioned upon a number of conditions precedent, including the procurement of relevant government approvals.”
FGEN LNG, a wholly owned subsidiary of First Gen, is the owner and operator of the interim offshore terminal project located in its parent company’s Clean Energy Complex in Batangas City.
“Today, the First Gen Clean Energy Complex houses our Santa Rita, San Lorenzo, San Gabriel, and Avion natural gas power stations and we’ve completed testing and commissioning of our liquefied natural gas (LNG) terminal and floating storage and regasification unit vessel, the BW Batangas,” First Gen Chairman and Chief Executive Officer Federico R. Lopez said last week.
FGEN LNG generated revenues of $8 million and a recurring net loss of $20 million in 2023. Meanwhile, Tokyo Gas is one of the largest purchasers of liquefied natural gas in the world with an annual volume of 13 million tons. It has over 63,000 kilometers of gas pipelines serving about 8.8 million customers.
First Gen shares went up by 28 centavos or 1.56% to close at P18.18 each on Wednesday. — Sheldeen Joy Talavera
