Friday, January 25, 2019

Tanglawan buying AG&P site for LNG terminal project

Published By Myrna M. Velasco

A ‘conditional sale’ pact has been signed between Tanglawan LNG Philippines Inc. and AG&P on the purchase of the latter’s property as the site of the liquefied natural gas (LNG) terminal project of the joint venture of Uy’s Phoenix Petroleum Philippines Inc. and China National Offshore Oil Corporation (CNOOC).
As disclosed to the media, the document on the ‘conditional sale’ of the prospective project site was submitted to the Department of Energy (DOE) as among the documentary justification for the US$2.0 billion integrated LNG projects of the Phoenix Petroleum-CNOOC tandem.
“AG&P and Tanglawan LNG have signed a ‘conditional sale’ on the project site… and the document was submitted to us,” Energy Undersecretary Donato D. Marcos said. The targeted project site is in Batangas province.
Beyond that, Marcos noted that the property of the National Development Company (NDC) is also eyed as an alternative project site – primarily the previous site of the Chevron refinery in San Pascual, Batangas.
The energy official explained that project location, financial closing as well as the existence of a captive market’ or anchor load for the LNG import facility had been among the justifications required by the DOE on its issuance of a notice-to-proceed (NTP) to the Uy-CNOOC tandem.
Following that, he noted that Tanglawan LNG would still need to submit additional requirements – including documents that would show viability of its proposed 1,100-megawatt gas-fired power facility. This is due in the next six months.
“In the NTP given to Tanglawan, there are provisions there stating that they will need to submit additional papers – including those that will firm up their seriousness on the 1,100MW power plant project,” he stressed.
Marcos indicated that the proposed gas-fed power facility will be the initial captive market of the 2.2 million tons per annum (mtpa) LNG terminal that the Filipino-Chinese joint venture will be putting up.
“The power plant project was part of their identified captive market. So in the next six (6) months, we should be able to see that there’s seriousness for them to have that concretized,” Marcos

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