Energy Secretary Alfonso Cusi has extended the notice for Tanglawan Philippine LNG Inc. to proceed with its $2-billion liquefied natural gas project in Batangas province.
“It is stated in the Philippine Natural Gas Regulation that in any case they can ask for extension,” Energy Undersecretary Donato Marcos said Friday.
“It’s approved (by Secretary Alfonso Cusi), for another six months. The extension started last month mostly likely expire again on December, January,” Marcos said.
He said Tanglawan sought for extension due to permitting concerns.
He said Tanglawan’s request for extension did not have any material change from the previously approved NTP, but the agency is looking at significant developments in the LNG project.
The natural gas division of the Oil Industry Management Bureau of the agency earlier recommended the extension of the NTP.
Tanglawan filed for an extension of the notice to proceed issued by the DoE for the $2 billion LNG project on June 20, 2019.
Tanglawan is the joint venture between Phoenix Petroleum Philippines of businessman Dennis Uy and China National Offshore Oil Corp.
Tanglawan is building a re-gasification terminal in Batangas costing $686 million and a power plant component that is estimated to cost $1.3 billion. The notice to proceed expired on June 22.
The department earlier gave Tanglawan six months from the issuance of the NTP in December 2018 to comply with government conditions.
Tanglawan is supposed to break ground on the LNG regasification and receiving terminal with a capacity of 2.2 metric tons per annum this year. Commercial operations were expected to start by 2023.
State-owned Philippine National Oil Co. is also supposed to take a stake in the project.
The government has been pushing for the development of the LNG hub to secure the country’s power requirements in preparation for the eventual depletion of the Malampaya gas project in northwest Palawan by 2024.