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Dennis Uy-led firm, CNOOC get go-signal for LNG terminal

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COURTESY OF PHOENIX PETROLEUM

By Arra B. Francia, Reporter

PHOENIX Petroleum Philippines, Inc. looks to break ground for its liquefied natural gas (LNG) facility with partner China National Offshore Oil Corp. (CNOOC) this year, after securing the energy department’s go-signal.

In a statement issued Friday, Phoenix Petroleum said Tanglawan Philippine LNG Inc., its joint venture firm with CNOOC, has been granted the notice to proceed by the Department of Energy (DOE) to build an LNG terminal in Batangas.

With the approval, Tanglawan will start construction for the regasification and receiving terminal with a capacity of 2.2 metric tonnes per annum (mtpa). Commercial operations are set to start in 2023.

Tanglawan also targets to develop a gas-fired power generation facility with an installed capacity of up to 2,000 megawatts in the long term. The facility seeks to support the demand for a clean, low-cost, and environment-friendly energy source in Luzon.

CNOOC and Phoenix Petroleum partnered for the project last year after the DOE issued a circular on the Philippines Downstream Natural Gas Regulation in 2017. This outlined the rules governing the downstream natural gas industry.

Tanglawan is also in the middle of negotiations with CNOOC Gas and Power Group Co., Ltd., China’s largest LNG importer and terminal operator, alongside Phoenix Petroleum for a possible joint venture.

Other companies that have proposed to develop an LNG terminal include First Gen Corp and its Japanese partner Tokyo Gas Co., Ltd., Australia’s Energy World Corp. Ltd. (EWC), and US-based firm Excelerate Energy L.P.

EWC was the first to secure the DOE’s go-signal last Jan. 2, allowing it to start construction for an LNG import terminal and regasification facility on Pagbilao Grande island in Quezon province.

The DOE had earlier accepted letters of intent from 18 firms for LNG project, namely Cleanway Energy Development, First Gen Corp., Tokyo Gas Co. Ltd., CGN New Energy Holdings Co. Ltd., Philippine National Oil Co., VIRES Energy Corp., DeEnergy International Corp., SK E&S Co. Ltd., Carmine Energy Pte. Ltd., Transformation Llc., Limay LNG Power Corp., Kepco E&C, Atlantic Gulf & Pacific Co., Osaka Gas Co. Ltd., Lloyds Energy, PhiLNG Ltd. and BKB Consortium.

The deparment has encouraged firms to build an LNG facility as it expects the depletion of the Malampaya gas to start by 2024.