Phoenix, CNOOC eye LNG venture

Published May 20, 2018, 10:01 PM By Myrna M. Velasco

https://business.mb.com.ph/2018/05/20/phoenix-cnooc-eye-lng-venture/

Fast-rising Davao businessman Dennis Uy announced over the weekend that his petroleum arm Phoenix Petroleum Philippines, Inc. and prospective foreign partner China National Offshore Oil Corporation (CNOOC) are jointly studying  their entry into the country’s expanding gas market through build-up of liquefied natural gas (LNG) infrastructure chain.

Uy indicated to reporters over the weekend that “a study is being done” on targeted LNG investment; further qualifying that this is undertaken jointly with China’s giant CNOOC.

The Phoenix chief executive is still “playing his cards closer to his chest” though on whatever joint venture parameters of discussion they have been pursuing with the Chinese firm.

“We just have had early talks,” Uy quipped, when quizzed by media on the extent of talks or the investment stance being laid down by relevant parties at the negotiating table.

The Phoenix Petroleum chief executive is also tightlipped when asked on the synergy of the potential tie-up with CNOOC; even on the latter’s participation in the bidding carried out by state-run Philippine National Oil Company (PNOC) on its own solicitation of a partner on $2.0- billion LNG terminal project.

PNOC forthrightly indicated in various media interviews that CNOOC had been among the foreign companies that submitted “unsolicited proposal” on its LNG venture.

The state-run firm’s plan is to integrate a 200-megawatt gas-fired power plant on its gas market development roadmap; and it is similarly eyeing to equitize its banked gas.

On Phoenix Petroleum’s part, if it will eventually take serious steps on planned LNG investment plunge, such is seen as one of its major diversification forays yet in the energy sector.

The company is best credited on its “kick-off point” in the downstream oil industry – first as a regional player in Davao; but had set inroads on investments on a national level over the years. It is now the country’s leading independent oil player – already inching very close into snatching markets that traditionally reigned into the foothold of the long-known “Big 3” players in the country.

With LNG as likely addition in Phoenix Petroleum’s portfolio, the company may also be looking soon at the power sector – as this is the major anchor load to imported LNG supply eventually flowing into the country.

That will be a prospective “new territory” for Phoenix Petroleum, as its engagement in the sector had just been limited to supplying fuels to power plants at this point.