Phoenix Petroleum Philippines Inc. on Tuesday signed an agreement with CNOOC Gas and Power Group Co. Ltd., a unit of China National Offshore Oil Corp., to study and develop a liquefied natural gas receiving terminal project in the Philippines.
“The (agreement) for the LNG project will potentially broaden Phoenix Petroleum’s portfolio of new businesses, which now include LPG, convenience retailing, asphalt, and e-transactions,” Phoenix said in a disclosure to the Philippine Stock Exchange.
Parent CNOOC is China’s largest LNG importer and terminal operator.
Phoenix vice president for external affairs Raymond Zorrilla said the LNG opportunity would be an addition to the company’s expanding portfolio of new ventures complementing and strengthening its core fuel business.
“As one of the largest LNG players in the world, CNOOC has the breadth of expertise and experience in the industry. The value chain of CNOOC’s business activities ranges from upstream exploration and development (through its investments in Australia), international trading, liquefaction, shipping, LNG receiving and processing, pipeline transportation, trucking, power plants and gas stations,” Zorrilla said.
CNOOC has already submitted an unsolicited proposal to state-run Philippine National Oil Co. to develop the country’s first integrated LNG project costing $2 billion. CNOOC also expressed interest to submit a separate proposal to the Energy Department for the planned LNG facility.
“By investing in clean energy such as LNG, Phoenix Petroleum is doing its part in supporting the Philippines Energy Plan to diversify energy mix and ensure sustainable, stable, secure, sufficient, accessible and reasonably-priced energy, with a strategic focus on green alternatives that reduce greenhouse gas emissions and help combat global warming,” Zorilla said.
“LNG is a cleaner alternative and it will be an excellent addition to Phoenix’s expanding portfolio of green products, which currently includes coco methyl ester, otherwise known as coco biodiesel, and liquefied petroleum gas,” he added.