PHOENIX Petroleum Philippines, Inc. has signed a memorandum of understanding (MoU) with Philippine National Oil Co. (PNOC) and China’s CNOOC Gas and Power Group Co. Ltd. (CNOOC G&P) to jointly explore opportunities in the liquefied natural gas (LNG) hub project, whose main proponent is Davao City businessman Dennis A. Uy.
In a disclosure to the stock exchange, Phoenix Petroleum said the MoU was signed on Feb. 28 in Taguig City at the office of Department of Energy (DoE) and in the presence of Secretary Alfonso G. Cusi.
The signing, which came after a series of engagement talks among the three parties, will allow them to explore and discuss business opportunities and cooperation in relation to the equity investment in Tanglawan Philippine LNG Inc., the project entity for the LNG project.
The talks also cover involvement in other companies relating to the project, PNOC facilities, market development, PNOC banked gas, and future energy projects, Phoenix Petroleum said.
“We warmly welcome the potential addition of PNOC in the LNG hub project we have been planning to venture on with CNOOC G&P. The LNG hub is a crucial project that will provide long-term solutions for our country’s energy needs, and the strategic alliance among our companies will further secure the continuous development of this venture,” said Henry Albert R. Fadullon, Phoenix Petroleum chief operating officer.
Mr. Uy, Phoenix Petroleum president and founder, signed the MoU with CNOOC G&P Chief Finance Officer and Vice-President Wu Zhengxing, and PNOC President and Chief Executive Officer Reuben S. Lista.
Phoenix Petroleum has said that the LNG hub project will break ground through its regasification and receiving terminal with a capacity of 2.2 metric tons per annum within the year. Commercial operations is targeted to start by 2023.
The facility is hopes to support demand for a clean, competitive, and environment-friendly energy source in Luzon, and provide energy security for the country. It also plans to include the development of a gas-fired power generation facility with up to 2,000 megawatts installed capacity.
PNOC, a government-owned and -controlled corporation, was included in the LNG hub project after Phoenix Petroleum and CNOOC G&P signed an MoU on June 5, 2018 to develop the project, which will be the country’s first.
PNOC, the DoE’s commercial arm, abandoned its plan to lead a similar project in an announcement on Jan. 17, 2019. Other groups are also pursuing their separate LNG projects, although the project led by Phoenix Petroleum is the only one with a participating state entity.
On Friday, Phoenix Petroleum closed unchanged at P11.80.