Monday, March 4, 2019

Tripartite deal signed on $2-billion LNG projects



Published By Myrna M. Velasco

A tripartite deal has been cemented between and among Phoenix Petroleum Philippines Inc., China National Offshore Oil Corporation (CNOOC) and Philippine National Oil Company (PNOC) for partnership in the targeted US$2.0 billion worth of investments in liquefied natural gas (LNG) facilities – although equity sharing will still be the next phase of their negotiations.
The memorandum of understanding (MOU) was sealed Thursday (February 28) by Phoenix Petroleum President Dennis Uy  ; PNOC President Reuben S. Lista; and CNOOC Gas & Power Group Co. Ltd. Chief Finance Officer and Vice President Wu Zhengxing.
In a statement to the media, Phoenix Petroleum noted that “the MOU will allow the three companies to explore and discuss business opportunities and cooperation in relation to the equity investment in Tanglawan Philippine LNG Inc..”
Tanglawan is the corporate vehicle that was first given a notice-to-proceed (NTP) by the Department of Energy (DOE) to build a commercial-scale LNG import terminal with 2.2 mtpa capacity.
The company was first declared as a joint venture between Phoenix Petroleum and CNOOC; then PNOC had been tapped to join as the third partner in the targeted gas technology-anchored ventures.
According to Phoenix Petroleum Senior Vice President Alan Raymond T. Zorrilla, “the details of the equity participation will be part of subsequent definitive discussions among the three parties.”
As of this writing, the Uy-led firm just indicated that the PNOC facilities as well as its banked gas shall become part of the matters to be discussed at the negotiating table moving forward.
Lista further qualified “it’s just the MOU that we signed. We’re still talking on equity participation, it will be dependent on the total cost of investments.”
The propounded LNG projects – as hinged on the ‘hub concept’ espoused by Energy Secretary Alfonso G. Cusi, is expected to break ground within the year – both for the blueprinted LNG import facility and the integrated power plant component.
As asserted by Phoenix Petroleum Chief Operating Officer Henry Albert Fadullon, “the LNG hub is a crucial project that will provide long-term solutions for our country’s energy needs,” and added that “the strategic alliance among our companies will further secure the continuous development of the venture.”
The target completion of the LNG terminal, which is the key component of the project, is year 2023 – and this is being aligned as a replacement in case the Malampaya field already runs out of gas production in the next 4-5 years.
As asserted by Phoenix Petroleum Chief Operating Officer Henry Albert Fadullon, “the LNG hub is a crucial project that will provide long-term solutions for our country’s energy needs,” and added that “the strategic alliance among our companies will further secure the continuous development of the venture.”
The target completion of the LNG terminal, which is the key component of the project, is year 2023 – and this is being aligned as a replacement in case the Malampaya field already runs out of gas production in the next 4-5 years.

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