Phoenix Petroleum, CNOOC joint LNG project close to securing DOE permit

By Lenie Lectura – December 26, 2018
from Business Mirror

THE partnership between Phoenix Petroleum and China National Offshore Oil Corp. (CNOOC) for a planned liquefied natural gas (LNG) import terminal and power plant is one step closer to securing a permit from the Department of Energy (DOE).

Tanglawan Philippines LNG Inc., the registered joint-venture firm of Phoenix and CNOOC, has submitted all the necessary requirements.

“We will issue a certificate of completeness in the next few days,” DOE Undersecretary Donito Marcos said.

He said  the certificate to be issued is not yet a permit from the agency, but  rather compliance certificate showing that Tanglawan has complied with submission of pertinent documents to back up its application.

The issuance of permit for Tanglawan to proceed with its LNG project is expected soon.

Tanglawan is among the 23 firms that expressed interest to put up an LNG hub in the Philippines. However, it is the only one that submitted an application to build an LNG hub.

In its application, Tanglawan is eyeing to build an LNG onshore terminal in Batangas with a capacity of 5 million metric tons per annum. It will also build a power plant with a capacity of 1,000 megawatts to 2,000 MW.

Energy Secretary Alfonso Cusi said he awaits a final report from the agency’s Centralized Review and Evaluation Committee (C-REC) before he signs the permit.

The other firms that expressed interest are Philippine National Oil Co., Cleanway Energy Development, First Gen Corp., CGN New Energy Holdings Co. Ltd., VIRES Energy Corp., DeEnergy International Corp., SK E&S Co. Ltd., Carmine Energy Pte. Ltd., Transformation Llc., Kepco E&C, Atlantic Gulf & Pacific Co., Osaka Gas Co. Ltd., Llyods Energy, PhiLNG Lte Ptd. and BKB Consortium.

Based on Tanglawan’s application, two sites in Batangas are being considered.

“They have a memorandum of cooperation or understanding with AG&P and they are also looking at NDC (National Development Corp.) land,” Marcos said.

Marcos said Limay LNG Power Corp., in partnership with China Energy, also submitted an application albeit “in a different location.”

“For Limay, its application is for a power plant in Bataan and they are looking at trading through their own LNG receiving terminal. We suggested to them that they don’t have to build another LNG terminal because they can negotiate with whoever wins the Batangas terminal,” said Marcos.