LNG venture gets requirement deadline

By Jordeene B. Lagare – January 24, 2019
from The Manila Times

A JOINT venture between Phoenix Petroleum Philippines Inc. and China National Offshore Oil Corp. (CNOOC) subsidiary Gas and Power Group Co. Ltd. has been given half a year to fulfill all the requirements for building a liquefied natural gas (LNG) facility in Batangas province.

In an interview on Wednesday, Energy Secretary Alfonso Cusi said the joint venture, Tanglawan Philippines LNG Inc., has “six months” from the issuance of the “notice to proceed…to do all of the submissions…” The notice was issued on Dec, 21, 2018.

Among those it needs to submit to the Energy department are details on the planned facility, including its timeline for the project.

At the sidelines of an event in Taguig City, Energy Undersecretary Donato Marcos told reporters that Dennis Uy-led Phoenix Petroleum and the CNOOC unit had to show how serious they were in constructing a 1,100-megawatt (MW) gas-fired power plant.

Tanglawan also has to reach a financial closing before six months and look for an offtaker, he said. “Otherwise, the market or commercial viability of the project will not push through.”

Tanglawan is scheduled to break ground for the facility this year, hoped to reach a final investment decision by yearend, and start construction by the second quarter of 2020.

Once finished, the hub shall have a regasification and receiving terminal with a 2.2-million-ton per annum capacity and a gas-fired power generation facility with an installed capacity of up to 2,000 MW.