PXP Energy Corp. said it is ready to take a stake in the planned liquefied natural gas project of Phoenix Petroleum Philippines Inc. and joint venture partner China National Offshore Oil Corp.
Tanglawan Philippines LNG Inc., the joint venture of CNOOC Gas and Power Group Co. Ltd. and Phoenix Petroleum led by Davao-based businessman Dennis Uy, said it was the first and “most advanced” company to submit an LNG project proposal to the government.
“We don’t know the numbers whether it’s feasible or not… but we just have an option to pick up 50 percent of what Dennis [Uy] will own in that venture,” PXP chairman Manuel Pangilinan said.
PXP Energy earlier said it would acquire up to a 49-percent interest in the planned LNG project of Phoenix as part of the subscription agreement with Dennison Holdings Corp. Phoenix and Dennison are companies owned by Uy.
“It’s mainly the gas terminal, maybe gas plants so we don’t know what will happen because if it’s gas plants, then they will have to talk to Meralco [Manila Electric Co.],” Pangilinan said.
Pangilinan also chairs Meralco, the country’s biggest power distributor, which could be an off-taker of electricity from the LNG power plants of Tanglawan.
Tanglawan’s proposal involves the construction of an onshore LNG terminal in Batangas and natural gas plants with a capacity of more than 1,000 megawatts.
Energy Undersecretary Donato Marcos earlier said Tanglawan’s application was still under review.
Marcos said the consortium did not identify the existing natural gas plants in Batangas as their captive market and was looking at building their own natural gas plants.
Pangilinan said PXP Energy decided to team up with Phoenix because of Uy’s connections with CNOOC.
PXP Energy, which has a 79-percent stake in Forum Energy Ltd., controls Service Contract 72 (Recto Bank) and SC 75 (Northwest Palawan) which are currently under exploration moratorium because of the territorial conflict with China.
“Given that Dennis has signified an intention and desire to be part of PXP Energy in respect with SC 72, this would be a logical step for us to co-invest with him on the gas terminal and gas plant but there is no commitment at this stage,” Pangilinan said earlier.
“It is basically an option for us to take 49 percent of what he might own eventually of the terminal or gas plant,” Pangilinan said.