MANILA -- Tokyo Gas aims to expand the use of floating liquefied natural gas terminals across Southeast Asia, helping countries build import infrastructure as their gas fields begin to run dry and accelerating the utility's pivot away from its traditional focus on supplying gas to homes in Japan.

In the waters of Batangas Bay south of Manila sits a floating storage and regasification unit (FSRU), a type of LNG terminal built aboard a ship. Tokyo Gas participates in operating the facility through a venture that includes a subsidiary of Philippine infrastructure developer Prime Infra.

The unit was showcased to the press on Wednesday ahead of a summit of the Asia Zero Emission Community (AZEC), a framework through which Japan and Southeast Asian nations cooperate on decarbonization initiatives, scheduled for November in Manila.

The FSRU serves as a hub that converts imported LNG back into gas and can supply it to power plants, factories and households.

Japan's large LNG demand typically is met through massive land-based terminals that receive, store and regasify LNG. Because FSRUs can be built at shipyards and transported to their destinations, they do not require large-scale land acquisition or extensive on-site construction, allowing them to be deployed more quickly and at lower upfront cost.

Countries across Southeast Asia are racing to introduce FSRUs as output declines from domestic gas fields developed after the oil shocks of the 1970s.

The Philippines' sole Malampaya gas field was at one point projected to be depleted as early as 2027, raising concerns that gas-fired power plants could be forced to shut down. Rising tensions in the Middle East, a major source of fuel imports, have added to those worries.

Philippine households rely on crude oil-derived liquefied petroleum gas (LPG) for hot water and cooking, while factories use LPG and diesel in boilers. Developing natural gas pipelines would reduce dependence on unstable supplies of Middle Eastern oil.

At present, the Batangas FSRU supplies natural gas only to nearby gas-fired power plants. Donnabel Cruz, president of Prime Infra subsidiary Prime Energy, said the company is considering supplying industrial parks and other users through pipelines in the future.

Kazuaki Shirozono, senior adviser at Aboitiz Economic Estates, which operates an industrial park in Batangas province where many Japanese firms are located, said "many tenant companies are requesting natural gas." The Batangas FSRU sends natural gas through pipes to nearby gas-fired power plants.

Tokyo Gas plans to use the operational expertise it is gaining in the Philippines to explore new projects in Malaysia, Vietnam and Indonesia. The company expects Southeast Asia's LNG imports to triple from 2023 levels to 54 million metric tons in 2030 as the region's population continues to grow.

"Thanks in part to our track record in the Philippines, we are receiving more inquiries from across Southeast Asia," said Masataka Sengoku, president of Tokyo Gas Philippines. With Japanese residential gas demand largely plateauing, the company aims to accelerate expansion of its gas business in fast-growing Southeast Asian markets through FSRUs.

Unlike oil, LNG requires continuous cooling during storage, making long-term stockpiling difficult. By developing FSRUs across Southeast Asia, countries could share supplies more easily during emergencies, strengthening regional energy security.

Global LNG demand is projected to reach 700 million tons annually by 2050, up 70% from current levels. Energy major ExxonMobil aims to handle 50 million tons of LNG annually by 2030.

Tokyo Gas targets doubling LNG trading volumes to 5 million tons by 2030 from 2022 levels. The utility is expanding natural gas production in the U.S. and increasing LNG procurement, with Europe and Southeast Asia as key markets.

"If we can liquefy natural gas and trade it with customers in Europe and Southeast Asia, we will be able to maximize its value," said Yukimaro Murata, a Tokyo Gas general manager.