By
Lenie Lectura - December 18, 2019
Dennis
Uy-led Phoenix Petroleum and China National Offshore Oil Corp. (CNOOC) Gas and
Power Group Co. Ltd. have asked the Department of Energy (DOE) for a temporary
suspension of the permit to proceed with their liquefied natural gas (LNG)
project.
“Both companies in the
partnership asked for a suspension. Separately, they asked but the tone was the
same,” Energy Undersecretary Donato Marcos said on Tuesday.
The request for
suspension involves the notice to proceed issued to Tanglawan Philippine LNG
Inc., the joint venture of Phoenix and CNOOC, by the DOE. The NTP was already
an extension of the first permit issued last December 21, 2018.
It is set to expire
this month.
The reason cited for
the suspension request was mainly brought about by Udenna Corp.’s (UC)
acquisition of international petroleum giant Chevron’s 45-percent stake in the
Malampaya gas field project.
Uy said the deal
involved the acquisition by UC Malampaya Philippines Pte Ltd., a subsidiary of
Udenna, of 100 percent of the shares of Chevron Malampaya Llc., a subsidiary of
Chevron Philippines Ltd.
“We are evaluating if
this is possible within the PDNGR [Philippine Downstream Natural Gas
Regulation], if there is a provision there. It appears that the business model
is now different because they have been interested in the 45-percent
participating interest of Chevron in Malampaya. That changes the configuration,
the approach and that is why they asked for a suspension,” said Marcos.
The DOE wants the issue
settled before the year ends.
The other firms that
secured NTP from the DOE are FGen LNG Corp., a subsidiary of First Gen Corp.
and US-based firm Excelerate Energy LP.
The NTP is valid for
six months only. It can be extended for another six months, subject to the
DOE’s evaluation.
CNOOC is China’s
largest LNG importer and terminal operator. Shareholders had approved Phoenix
Petroleum’s partnership with CNOOC for the LNG hub in March.
In March, Phoenix
Petroleum Philippines Inc. reported that its shareholders approved the oil
firm’s partnership with CNOOC for the planned LNG hub.
Tanglawan’s LNG project
will consist of regasification and receiving terminal with a capacity of 2.2
metric tons per annum. The facility will help support the demand for a clean,
competitive and environment-friendly energy source in Luzon, and provide energy
security for the country.
It also aims to develop
a gas-fired power generation facility with up to 2,000 megawatts installed
capacity.
Phoenix Petroleum and
CNOOC signed a memorandum of understanding with state-owned firm Philippine
National Oil Co. The MOU will allow the three companies to explore and discuss
business opportunities and cooperation in relation to the equity investment in
Tanglawan and other companies relating to the project, PNOC facilities, market
development, PNOC banked gas and future energy projects.
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