PHOENIX Petroleum Corp. and state-owned Philippine National Oil Co. (PNOC) may sign soon a memorandum of understanding (MOU) to formalize their strategic alliance for the planned LNG (liquefied natural gas) regasification terminal of Tanglawan Philippine LNG Inc.
Tanglawan is a planned joint venture between Phoenix Petroleum and CNOOC Gas and Power Group Co. Ltd., China’s largest LNG importer and terminal operator.
Its LNG project, which will consist of regasification and receiving terminal with a capacity of 2.2 mtpa, is expected to break ground in Batangas this year.
“Following the Department of Energy’s [DOE] Notice to Proceed [NTP] issued to Tanglawan, the representatives from Phoenix are now in talks with the PNOC in hopes to secure a strategic alliance with the state-owned firm in its LNG hub project,” Phoenix said on Thursday.
If and when the MOU is signed, PNOC will be involved in “the areas of pipeline infrastructure and franchise, banked gas, equity and other marketing opportunities,” as proposed by Phoenix.
Phoenix and PNOC have just concluded their first engagement meeting last week, “with the planned joint venture looking into the signing of the memorandum of understanding with PNOC in the coming weeks.”
The planned LNG facility will help support the demand for a clean, competitive and environment-friendly energy source in Luzon. Likewise, the LNG hub project aims to provide energy security for the country.
Tanglawan is targeting to operate the LNG hub commercially by 2023. It also aims to develop a gas-fired power-generation facility with up to 2,000 megawatts of installed capacity. The proposed joint venture with CNOOC has been approved by the board of directors of Phoenix Petroleum on January 31, 2019.
After the issuance of the NTP from the DOE, Tanglawan still needs to secure other pertinent permits, such as Environmental Compliance Certificate and the green light from the National Commission on Indigenous Peoples. Also, if applicable, local government unit’s endorsement is required. The project also needs to undergo financial closure.
Aside from Tanglawan, two more firms filed their respective NTP applications with the DOE.
US floating LNG player Excelerate Energy filed last month an application for a permit to proceed with its plan to construct a proposed floating LNG terminal.
The pioneer and market leader in innovative floating LNG solutions is planning to construct the facility in Batangas.
Aside from Excelerate, the DOE has received a similar application from Lopez-led First Gen Corp.
First Gen’s application stated it will construct an LNG terminal in Batangas City with its partner Tokyo Gas Co. Ltd.
Tokyo Gas will take a 20-percent participating interest in the FGEN LNG project and provide support in development work to achieve a final investment decision (FID). They passed the parties will enter into a definitive agreement to proceed with the construction of the FGEN Batangas LNG terminal project.
Their NTP applications are still under evaluation. The agency will determine if there is overlapping of captive market among aspiring LNG players.