Wednesday, June 6, 2018

Phoenix Petroleum, CNOOC tie up to develop PHL’s 1st LNG terminal

By Lenie Lectura - June 5, 2018

PHOENIX Petroleum is partnering with CNOOC Gas and Power Group Co. Ltd. to develop the country’s first liquefied natural gas (LNG) receiving terminal.
Phoenix said on Tuesday that it signed a memorandum of understanding (MOU) with the CNOOC to study, plan and develop a LNG receiving terminal project in the Philippines.
CNOOC Gas and Power is a subsidiary of China National Offshore Oil Corp., China’s largest LNG importer and terminal operator.
The MOU, signed on June 5, for the LNG project will potentially broaden Phoenix Petroleum’s portfolio of new businesses, which now includes LPG, convenience retailing, asphalt, and e-transactions.
Last year the company acquired Petronas Energy Philippines Inc., now Phoenix LPG Philippines Inc. Earlier this year Phoenix bought Philippine FamilyMart as it diversified to the convenience-store retailing business. The company also recently broke ground for its asphalt plant under Phoenix Asphalt Philippines Inc., a joint venture of Phoenix Petroleum, Tipco Asphalt of Thailand and PhilAsphalt. Last week Phoenix Petroleum acquired a majority stake in digital transactions company Action.able.
No other details were provided.
The Department of Energy (DOE) recently revealed that CNOOC was among the 10 interested firms to put up an LNG facility in the country.
The DOE said it has already conducted pre-application conferences for the proposed LNG projects of the following potential project proponents: Cleanway Energy Department Corp., First Gen Corp., Tokyo Gas Co. Ltd., CNOOC and Philippine National Oil Co., Vires Energy Corp., SK E&S Co. Ltd.
Likewise, the two pre-application conferences have been scheduled for the proposed LNG projects of  Carmine Energy Pte. Ltd. and DeEnergy International Corp.
The DOE recently issued the rules governing the Philippines Downstream Natural Gas Industry.  Interested LNG investors have long waited for this policy meant to guide them in pursuing this capital-intensive project.
Department Circular 2017-11-0012 also outlines the issuance of permit on the construction, expansion, rehabilitation, modification, operation and maintenance of downstream natural gas facility.
Prior to the granting of the permit, the potential project proponent, as an initial step, shall request for a pre-application conference to present the general project concept to the Centralized  Review and Evaluation Committee, as well as to include the discussions on any clarification of the rules and requirements of the permit application, said the DOE.
The LNG project should be completed before the expected depletion of the Malampaya offshore gas find near Palawan Island in 2024.
LNG is natural gas converted into a liquid state for easier storage and transportation. Upon reaching its destination, LNG is regasified so it can be distributed through pipelines as natural gas.
Energy Secretary Alfonso G. Cusi said the government is aiming to turn the Philippines into a hub for LNG. Currently, around 3,500 megawatts of power-plant capacity is dependent on the country’s sole natural gas source.
The agency also intends to put up a 5 metric tons per annum integrated LNG facility in a bid to ensure the continued supply of gas.

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