PHOENIX Petroleum Philippines, Inc shareholders approved the oil firm’s partnership with the China National Offshore Oil Corp. (CNOOC) for the planned LNG (liquefied natural gas) hub.
In a disclosure to the stock exchange on Monday, the oil firm said it sought approval of authority for Phoenix Petroleum or any of its subsidiaries to enter into a joint venture agreement or cooperation with CNOOC to operate and establish various LNG related trade and services under the LNG Integrated Hub Project, which includes the operation of an LNG terminal and gas-fired power plant.
The oil firm also received the green light from its shareholders to form and organize a new corporation, a wholly owned subsidiary of the company to manage the corporation’s LNG interest in the LNG Integrated Hub Project.
These were tackled during a stockholders’ meeting held last Friday.
An initial amount of P250 million will be set aside for the LNG project which shall include the formation of a new corporation.
The joint venture between Phoenix Petroleum and CNOOC is called Tanglawan Philippine LNG Inc.
It will break ground in May for its LNG hub project, with commercial operations targeted to start by 2023, government officials said.
Tanglawan’s LNG project will consist of regasification and receiving terminal with a capacity of 2.2 metric tons per annum. The facility will help support the demand for a clean, competitive, and environment-friendly energy source in Luzon, and provide energy security for the country.
It also aims to develop a gas-fired power-generation facility with up to 2,000 megawatts (MW) installed capacity. Recently, Phoenix Petroleum and CNOOC signed a memorandum of understanding with state-owned firm Philippine National Oil Co. The MOU will allow the three companies to explore and discuss business opportunities and cooperation in relation to the equity investment in Tanglawan and other companies relating to the project, PNOC facilities, market development, PNOC banked gas and future energy projects.
“The group is being encouraged before May 13 to conduct the groundbreaking. When we signed the MOU, we are encouraging ourselves to hold the groundbreaking before middle of May,” PNOC President Reuben Lista had said. Lenie Lectura
PNOC and Tanglawan are trying to find ways on how to maximize the remaining 97.67 petajoules (Pj) Malampaya banked gas, valued at $700 million to $750 million.