Tanglawan Philippine LNG Inc., the joint venture of Phoenix Petroleum Philippines and China’s CNOOC Gas and Power, is set to sign a memorandum of understanding with state-run Philippine National Oil Co. for the planned $2-billion liquefied natural gas hub project.
Phoenix, a company led by Davao City-based businessman Dennis Uy, confirmed in a statement that talks were ongoing with PNOC “in hopes to secure a strategic alliance with the state-owned firm in its LNG hub project.
The Energy Department already issued a notice to proceed to Tanglawan for the construction of an LNG regasification terminal in Batangas.
“The first engagement meeting between the two parties progressed last week, with the planned joint venture looking into the signing of the memorandum of understanding with PNOC in the coming weeks,” Phoenix said.
The Tanglawan project is expected to break ground for the regasification and receiving terminal with a capacity of 2.2 metric tons per annum this year.
“With PNOC on board, Phoenix has proposed their participation and involvement in the areas of pipeline infrastructure and franchise, banked gas, equity and other marketing opportunities,” the oil firm said.
Phoenix said its LNG facility would help support the demand for a clean, competitive and environment-friendly energy source in Luzon and provide energy security for the country.
The Tanglawan venture plans to operate the LNG hub commercially by 2023. It also aims to develop a gas-fired power generation facility with up to 2,000 megawatts of capacity.
Phoenix said in a report to the Securities and Exchange Commission that it was planning to take a 40-percent stake in Tanglawan.
Energy Secretary and PNOC chairman Alfonso Cusi earlier said PNOC and Tanglawan “agreed in principle” for the government to take a stake in its planned LNG facility. PNOC is the government’s oil and gas arm.
Cusi said PNOC has the franchise to operate the pipelines and the department “might elect” to give PNOC a stake in the LNG terminal project.