Phoenix-CNOOC looks to partner with PNOC to build LNG terminal

MANILA, Philippines — The team-up of businessman Dennis Uy’s Phoenix Petroleum Philippines Inc. and China National Offshore Oil Corp. (CNOOC) plans to forge a partnership with state-run Philippine National Oil Co. (PNOC) for its liquefied natural gas terminal.

In a disclosure to the Philippine Stock Exchange yesterday, Phoenix Petroleum said its officials are in talks with PNOC to secure a strategic alliance for its planned LNG hub project.”

“With PNOC on board, Phoenix has proposed their participation and involvement in the areas of pipeline infrastructure and franchise, banked gas, equity, and other marketing opportunities,” the oil firm said.

This follows the notice to proceed (NTP) issued by the Department of Energy (DOE) to Tanglawan Philippine LNG Inc., the planned joint venture (JV) between Phoenix Petroleum and CNOOC Gas and Power Group Co. Ltd.

Phoenix said the first engagement meeting with PNOC started last week, “with the planned joint venture looking into the signing of the memorandum of understanding with PNOC in the coming weeks.”

After securing the NTP from DOE last December, the Tanglawan project is expected to break ground for its regasification and receiving terminal with a capacity of 2.2 metric tons per annum within the year.

The LNG hub is targeted to start commercial operations by 2023.

Tanglawan Philippine LNG also aims to develop a gas-fired power generation facility with up to 2,000 megawatts (MW) installed capacity. It is initially looking to build a 1,100 MW gas-fired power plant to become the offtaker of the LNG supply.

The Tanglawan facility will help support the demand for a clean, competitive, and environment-friendly energy source in Luzon.  It aims to provide energy security for the country.

CNOOC Gas and Power is discussing the Tanglawan joint venture with Phoenix Petroleum. The proposed joint venture with CNOOC has been approved by the board of Phoenix last Jan. 31.

Apart from Tanglawan Philippines, the DOE has granted Energy World Corp., an Australia listed energy company, a permit to construct, own and operate the LNG import terminal and regassification facility in Pagbilao, Quezon.

Since 2011, EWC has been developing the first LNG hub terminal in the Philippines in Pagbilao, Quezon. It consists of two, full containment, onshore LNG tanks with a pumpable capacity of 130,000 cubic meters of LNG each.

Another firm, US-based Excelerate Energy L.P., an LNG company based in Texas, submitted a proposal to build a floating storage and regassification unit offshore Batangas.