DOE names 3 firms ‘serious’ in plan to build LNG terminal

By Lenie Lectura -November 1, 2018
https://businessmirror.com.ph/doe-names-3-firms-serious-in-plan-to-build-lng-terminal/

ENERGY Secretary Alfonso G. Cusi cited three firms “serious” in their plans to build and operate a liquefied natural gas (LNG) import terminal in the country.

Cusi identified the three firms as Philippine National Oil Co. (PNOC), China National Offshore Oil Corp. (CNOOC) and Tokyo Gas.

The three firms are among the 18 local and foreign firms that have so far expressed interest to pursue LNG projects since the Department of Energy (DOE) issued last year a circular on the Philippines Downstream Natural Gas Regulation (PDNGR), which spells out the rules governing the downstream natural gas industry.

Since this is a race, the first to submit a complete LNG proposal to the DOE will be awarded with a notice to proceed.

The DOE has so far received one application, submitted by Tanglawan Philippines LNG Inc., the partnership between state-owned CNOOC and Philippine fuel retailer Phoenix Petroleum.

However, the application was returned because it lacked a certificate of registration from the Securities and Exchange Commission (SEC).

“CNOOC and Phoenix submitted both technical and financial applications. But we wrote them a letter informing them about certain observation about their application,” DOE Assistant Secretary Leonido Pulido said. “They have not yet been issued a certificate of registration by the SEC.”

In June CNOOC and Phoenix signed a memorandum of understanding to study, plan and develop an LNG receiving terminal project in the Philippines.

Cusi is hopeful his office can decide which proposal to accept by November.

Pulido earlier said it would take 30 days for the DOE to evaluate the proposals upon submission of complete documents.

The other firms that expressed interest were Cleanway Energy Development, First Gen Corp., CGN New Energy Holdings Co. Ltd., VIRES Energy Corp., DeEnergy International Corp., SK E&S Co. Ltd., Carmine Energy Pte. Ltd., Transformation Llc., Limay LNG Power Corp., Kepco E&C, Atlantic Gulf & Pacific Co., Osaka Gas Co. Ltd., Llyods Energy, PhiLNG Ltd. Pte. and BKB Consortium.

The PNOC, meanwhile, has formally started scouting for a partner for the proposed LNG hub in Batangas Bay.

In a published bid invite, the PNOC had called on bidders to design, build, finance, operate and maintain the LNG hub, which it wants to be classified as an “energy project of national significance” under Executive Order 30.