By Lenie Lectura- January 17, 2019
TANGLAWAN Philippine LNG Inc. could
take in state-firm Philippine National Oil Co. (PNOC) as a stakeholder in
its capital-intensive LNG (liquefied natural gas) project.
Tanglawan is a joint venture between
Philippine fuel retailer Phoenix Petroleum and China’s largest LNG
importer and terminal operator, CNOOC Gas and Power Group Co. Ltd.
Energy Secretary Alfonso G. Cusi
said, “Phoenix and PNOC have agreed in principle” for PNOC to be part of the
LNG project, which was recently issued a Notice to Proceed by the Department of
Energy.
“[PNOC] can be one of the
stakeholders,” said Cusi when asked what would be PNOC’s participation in the
project. “The PDNGR [Philippine Downstream Natural Gas Regulation] does
not mandate or require PNOC to be a stakeholder. It’s a contractual or business
decision between PNOC and any private stakeholder.”
When asked if PNOC’s role can be
likened to its participation in the Malampaya project in which PNOC-Exploration
Corp. (EC) holds a 10-percent stake in the Malampaya consortium, Cusi said
“that’s a commercial decision to be made by PNOC.”
As of press time, Cusi clarified
that he has not received any official report on an actual agreement that would
include PNOC as one of the stakeholders. PNOC and Phoenix officials did not
reply when sought for comment.
Tanglawan plans to break ground by
2019 for the regasification and receiving terminal with a capacity of 2.2
metric tons per annum, with commercial operations targeted to start by 2023.
The LNG facility will help support
the demand for a clean, low-cost, and environment-friendly energy source in
Luzon and contribute to the sustainable development of the Philippine economy.
The integrated long-term project
plan also aims to develop a gas-fired power generation facility with up to
2,000 megawatts of installed capacity.
After the issuance of the notice to
proceed from the DOE, Tanglawan still needs to secure other pertinent
permits as provided by the PDNGR. The requirements for the next six
months, extendable for another six months based on valid reasons, include
Environmental Compliance Certificate and the green light from the National
Commission on Indigenous Peoples.
Also, if applicable, local
government endorsement is required. The project also needs to undergo financial
closure.
Aside from Tanglawan, two more firms
filed their respective notice to proceed applications with the DOE.
US floating LNG player Excelerate
Energy filed early this month an application for a permit to proceed with its
plan to construct a proposed floating LNG terminal.
The pioneer and market leader in
innovative floating LNG solutions is planning to construct the facility in
Batangas.
Aside from Excelerate, the DOE has
received a similar application from Lopez-led First Gen Corp.
First Gen?s application stated that
it will construct a LNG terminal in Batangas City with its partner Tokyo Gas
Co. Ltd.
Tokyo Gas will take a 20-percent
participating interest in the FGEN LNG project and provide support in
development work to achieve a final investment decision (FID). Afterwhich, the
parties will enter into a definitive agreement to proceed with the construction
of the FGEN Batangas LNG terminal project.
Meanwhile, the DOE has extended the
permit of Energy World Corp. (EWC).
EWC has been granted near the end of
December 2018 a permit by the DOE to build the LNG import facility at Pagbilao
Grande Island.
The permit provides EWC an
additional 24-month construction period that will enable the completion date
for the first tank of the LNG facility to be aligned to the commercial
operation date of the associated 650megawatt (MW) power plant.
It will also provide time to align
the NGCP switchyard expansion under construction and for the construction
of the second LNG tank.
The 650 MW has been recognized as
the anchor off-taker of the LNG project which consists of two
130,000-cbm LNG tanks, a dedicated jetty and marine infrastructure as well
as regasification and other ancillary facilities.
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