Tanglawan PHL LNG permit expired in June

By Lenie Lectura – July 3, 2019
from Business Mirror

TANGLAWAN Philippine LNG Inc.’s permit to proceed with its liquefied natural gas (LNG) regasification terminal project expired last month, an official of the Department of Energy (DOE) said.

“It expired last June 22,” said DOE Assistant Secretary Leonido Pulido on Tuesday.

He was referring to the Notice to Proceed (NTP) signed by the DOE on December 21, 2018.

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.

The NTP is valid for six months but can be extended upon approval of the DOE secretary. So far, Tanglawan has not applied for extension.

“They have yet to file for an extension so we have nothing to act on yet,” Pulido said. “We are planning to write them to ask for status of their proposed project.”

Should Tanglawan seek an extension of its NTP, the Centralized Review and Evaluation Committee (CREC) of the DOE will evaluate Tanglawan’s project status, if it has substantially complied with its plans presented last year.

CREC oversees and handles the processing of service contracts in various segments of the sector. The committee is chaired by DOE Undersecretary Donito Marcos. Pulido is a committee member. Tanglawan’s LNG project will consist of regasification and receiving terminal with a capacity of 2.2 metric tons per annum, with commercial operations targeted to start by 2023.

It also aims to develop a gas-fired power-generation facility with up to 2,000 megawatts (MW) installed capacity. Groundbreaking was supposed to happen last May. However, there has been no update since Enerdy Secretary Alfonso Cusi divulged the group’s plan to break ground for the project.

The other day, Cusi said Tanglawan could file for an extension.

“I only heard through the grapevine that they will ask for extension. We will just wait for their justification,” said the DOE chief.

Phoenix and CNOOC have signed a memorandum of understanding (MOU) with state-owned firm Philippine National Oil Co. (PNOC).

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.

Cusi had said 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.

“If their LNG power plant will push through they will study if they can buy our banked gas. They will consider if it is viable for them to buy the banked gas from us when the power plant is operational,” PNOC President Reuben Lista earlier said.