THE Department of Energy (DoE) has given Phoenix Petroleum Philippines, Inc. six months to validate its plan to put up a gas-fired power plant that will be supplied by the company’s proposed liquefied natural gas (LNG) facility, officials said on Wednesday.
Undersecretary Donato D. Marcos said the “notice to proceed” or NTP issued to the company contains a set of requirements, which had been “substantially” complied with except for some documents that are still for submission.
“In six months, the NTP states that we have to see the seriousness [of the company] to put up a power plant.”
Mr. Marcos said the notice includes milestones for Phoenix Petroleum to comply with such as the identification of a “captive market” for the imported LNG, which for the company is a proposed 1,100-megawatt (MW) gas-fired power plant.
The LNG project proposed by the company led by Davao City businessman Dennis A. Uy is in partnership with CNOOC Gas and Power Group Co., Ltd., which Phoenix Petroleum previously described as China’s largest importer and terminal operator of the fossil fuel.
Phoenix Petroleum earlier this month said Tanglawan Philippine LNG Inc., its project entity, had been granted the NTP to build an LNG terminal in Batangas.
The company plans to break ground by 2019 for the regasification and receiving terminal with a capacity of 2.2 mtpa (metric tons per annum), with commercial operations targeted to start by 2023.
It said the facility would “help support the demand for a clean and reliable energy source in Luzon and contribute to the sustainable development of the Philippine economy.” It also said that the integrated long-term project plan aims to develop a gas-fired power generation facility with up to 2,000 MW installed capacity.
“They have six months. The ball is in their hands,” DoE Secretary Alfonso G. Cusi told reporters.
Mr. Marcos also said that Phoenix Petroleum has to look for an offtaker, referring to a distribution utility that will buy its output.
“They have to look for the offtaker but at least one of the major offtakers is Meralco (Manila Electric Co.),” he said. “They have to coordinate. Otherwise, the market or the commercial viability of the project will not push through.”
Separately, Phoenix Petroleum said on Wednesday that it had recently achieved two International Organization for Standardization (ISO) certifications for its Quality Management System (ISO 9001:2015) and for its Environmental Management System (ISO 14001:2015).
“The certification covers the terminal and depot operations in Calaca, Davao, Villanueva, Calapan, Cebu, Bacolod, Dumaguit, and Zamboanga, as well as the support functions and business units based at Fort Legend Tower in Taguig and the headquarters office in Davao,” the company said in a statement.
“Being an ISO-certified company means that the business has established an effective framework which adopts and complies with global quality standards,” it said.
“Valid for three years, the certification affirmed the company’s commitment to customer satisfaction, high quality of service, environmental stewardship, compliance, and continuous improvement,” the company added.
On Wednesday, Phoenix Petroleum fell 1.64% to P10.80. — Victor V. Saulon