DOE to decide on group of China oil firm, Dennis Uy’s LNG terminal proposal next week

The Department of Energy (DOE) is set to decide next week on the proposal of China National Offshore Oil Corp. (CNOOC) and its local partner Phoenix Petroleum, led by Davao-based businessman Dennis Uy, to build a liquefied natural gas (LNG) facility in the country.

Energy Secretary Alfonso Cusi said the application of CNOOC for a notice to proceed for the LNG terminal project is under evaluation and already in its final stage with the DOE's Centralized Review and Evaluation Committee (C-REC).

"Hopefully, towards the weekend I'll have the report on my table and we will be able to make the decision next week," Cusi told reporters on the sidelines of Energy Investment Forum in Taguig City on Tuesday.

"We are rushing it and we want to make sure that the decision we are coming up is the correct one," he said.

Energy Undersecretary Dionato Marcos earlier said that Tanglawan Philippines LNG - the joint venture between Uy's Phoenix Petroleum and CNOOC - is so far the sole applicant for the project. 

The Tanglawan group is planning to build an LNG terminal with a capacity of 5 million metric tons per annum. The project will cost around $1 billion to $2 billion.

The DOE is pushing for an LNG terminal facility to avoid shooting up consumer electricity rates due to the expected depletion of resources in the Malampaya natural gas facility. — RSJ, GMA News