Monday, June 10, 2019

DOE presses progress on $2-billion Phoenix-CNOOC LNG project


Published By Myrna M. Velasco

As the major competitor has already jumped the gun on them at project implementation phase, Energy Secretary Alfonso G. Cusi indicated that he also wants to see progress in the $2.0-billion integrated liquefied natural gas (LNG) import terminal and gas-fired power projects being led by Phoenix Petroleum Philippines, Inc. of businessman Dennis Uy.
The Uy-owned company has two other partners – China National Offshore Oil Corporation (CNOOC) and Philippine National Oil Company (PNOC) – in the Tanglawan Philippine LNG Inc., the corporate vehicle of the proposed 2.3 million tons per annum (mtpa) LNG terminal and 800 to 1,000-megawatt power plant.
Cusi admitted that he has not been given notice or update information yet on when the Tanglawan projects will break ground – despite previous indications that such should have been accomplished as early as first quarter of 2019.
“I have not received any information yet,” Cusi told reporters when asked on the groundbreaking or implementation timeframe of the other $2.0 billion worth of integrated LNG investments.
The Department of Energy (DOE) issued notices to proceed (NTP) to at least three LNG import terminal projects – including the venture pushed ahead by Energy World Corporation (EWC); and that of the $1.0-billion LNG terminal project of First Gen Corporation which already broke ground last month and is getting headway into construction stage.
Cusi noted that the department had given more than one permit for LNG import installations, “because the horizon is wide, especially in our transition to cleaner energy sources in the island-provinces.”
At application point, Tanglawan was initially perceived as the “most aggressive” and “most advance” when it comes to project plans – but concretizing investment blueprints had so far stalled for the Phoenix-CNOOC-PNOC triumvirate.
PNOC indicated that it was on another round of meeting with Phoenix Petroleum last week, although the details of discussions or negotiations had been kept under wraps. The last statement given to the media was for the parties firming up “equity sharing” in the Tanglawan joint venture as well as finalizing the project site for the LNG terminal and the power generating facility.
For both Phoenix Petroleum and CNOOC, they have looked at the Tianjin LNG terminal of CNOOC as a potential template for the development to be pursued in the Philippines.
The Tanglawan LNG project is also eyed to be on commercial stream in 2023 – a parallel timeframe to the target of industry competitors when it comes to setting their LNG facilities on-line.

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