Credit to Author: JORDEENE B. LAGARE| Date: Fri, 11 Jan 2019 16:44:06 +0000
A joint venture between Phoenix Petroleum Philippines Inc. and China National Offshore Oil Corp. (CNOOC) is set to build a liquefied natural gas facility in Batangas province next year after securing the Energy department’s go-signal last month.
In a mobile message on Friday, Phoenix Petroleum Vice- President for External Affairs Raymond Zorilla said Tanglawan Philippines LNG Inc. was 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.
“We need to secure the permit to construct and finish the detailed design, plus all post-NTP (notice to proceed) requirements,” he said.
The department granted the NTP to Tanglawan on December 21, Energy Assistant Secretary Leonido Pulido 3rd said in a mobile message.
Tanglawan eyes starting the facility’s commercial operations by 2023, the Dennis Uy-led Phoenix Petroleum said in a disclosure on Friday.
The facility will have a regasification and receiving terminal with a capacity of 2.2 million tons per annum and a gas-fired power generation facility with an installed capacity of up to 2,000 megawatts (MW).
“The terminal is only stage one of our plans for the facility. We will develop it to become an LNG hub, giving Filipinos access to low-cost and environment-friendly energy supply,” Phoenix Petroleum Chief Operating Officer Henry Albert Fadullon said in the disclosure.
CNOOC Gas and Power Group Co., Ltd., China’s largest LNG importer and terminal operator, and the listed oil company are discussing a possible joint venture arrangement for Tanglawan Philippine LNG Inc.
According to Luis Limlingan, head of research and sales of Regina Capital Development Corporation (RCDC), said Uy had made its LNG venture seamless.
“Dennis Uy effortlessly finished what the Lopezes have been toiling [for] the last few years, as Tanglawan PH LNG was granted notice to proceed by DOE [for the] construction of an LNG terminal in Batangas,” Limlingan said.
He was referring to Lopez-led renewable energy company First Gen Corp., which has been planning to build its own LNG terminal in Batangas, even before the Energy department launched its own search for firm to undertake the project ahead the expected depletion of the Malampaya gas facility’s resources in offshore Palawan province beginning in 2024.
Last month, First Gen applied to secure approval to construct its LNG terminal in Batangas City with Japan-based partner Tokyo Gas Co. Ltd. to meet the natural gas requirements of existing and future gas-fired power plants of its affiliates and third parties.
Established in Davao City in 2005 and listed on the Philippine Stock Exchange in July 2007, Phoenix Petroleum is into trading and marketing refined oil products, including liquefied petroleum gas and lubricants; operating oil depots and storage facilities; and offering hauling and into-plane services.
Shares of Phoenix Petroleum added 12 centavos or 1.10 percent to close at P11 each on Friday.