DOE body finalizing approval of CNOOC-Uy LNG bid

Published December 2, 2018, 10:00 PM By Myrna M. Velasco

https://business.mb.com.ph/2018/12/02/doe-body-finalizing-approval-of-cnooc-uy-lng-bid/

The Centralized Review and Evaluation Committee (C-REC) of the Department of Energy (DOE) is now finalizing the evaluation of the proposal of the joint venture of China National Offshore Oil Corporation (CNOOC) and Davao businessman Dennis Uy for their planned $2.0 billion worth of integrated liquefied natural gas (LNG) import terminal and gas-fired power projects.

The C-REC review is a critical assessment phase before the DOE could finally announce the winning entity that will build the country’s long-planned LNG import terminal.

The tie-up of CNOOC and Uy under corporate vehicle Tanglawan Philippines LNG, Inc. has already been hinted by Energy Undersecretary and C-REC Chairman Donato D. Marcos as the likely investor that will secure government’s nod to undertake the highly coveted onshore LNG import terminal.

As Marcos indicated, Tanglawan will fork out $1.0 billion for the onshore LNG import terminal in Batangas and another $1.0 billion for the proposed anchor gas-fired power plant with capacity ranging from 1,000 to 2,000 megawatts.

Energy Secretary Alfonso G. Cusi said Tanglawan’s project proposal “is still with C-REC, I will have to wait for their recommendation and what had been their final evaluation. I’m also rushing them.”

The energy chief indicated though that state-run Philippine National Oil Company (PNOC) shall be the “third wheel” of the selected chosen joint venture that will undertake the LNG import terminal.

“Whoever will be the operator, PNOC will still be a partner. PNOC will not be outside of the picture – it’s important that the government is present in that venture through PNOC,” Cusi said.
He emphasized though that the equity take of PNOC in the project “shall depend on its investment capability…so that’s a matter that they will already decide on among themselves.”

Cusi admitted the DOE can no longer wait for PNOC to complete its strategic partner selection, so they will already proceed with selecting the investor or operator of the planned LNG terminal.

“I told PNOC, you’re a step behind…you’re still looking for a partner and that will take time. It’s nice for PNOC to have a partner, but we can’t also be delayed with our LNG project,” Cusi averred.
It must be recalled that the state-run firm already suspended its partner selection process indefinitely – despite the heaps of investors that had been knocking at its door since its announcement of revised business model in September this year.