Phoenix Petroleum, PNOC in talks on Tanglawan partnership

Phoenix Petroleum Philippines Inc. and state-owned Philippine National Oil Co. (PNOC) are in talks on possible partnership in Tanglawan liquefied natural gas (LNG) project.

Davao-based businessman Dennis Uy’s Phoenix is looking at partnering with PNOC after receiving the Department of Energy’s (DOE) approval for Tanglawan Philippine LNG Inc., according to a regulatory filing submitted by Phoenix legal manager Rosalio II Roque on Thursday.

“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,” the filing read.

“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,” it added.

Together with Chevron Malampaya LLC and Shell Philippines Exploration B.V., PNOC unit PNOC-Exploration Corp. is a member of the Malampaya consortium which owns and operates the Malampaya natural gas facility in offshore Palawan.

The DOE approved the Tanglawan project, headed by Phoenix and China National Offshore Oil Corp. (CNOOC), on December 21, 2018.

The project is expected to break ground for the regasification and receiving terminal this year, which will have a capacity of 2.2 million tons per annum.

“The facility will help support the demand for a clean, competitive, and environment-friendly energy source in Luzon. The LNG hub project aims to provide energy security for the country,” said Phoenix.

“The new venture is targeting 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 installed capacity,” it added.

Pangilinan-led PXP Energy Corp. last year said it is also open to having a stake in Tanglawan.

“I think it is accepted that Malampaya is starting to get depleted pretty soon. So I think we better start cracking on finding replacement gas for our requirements, otherwise we have to import,” Manuel Pangilinan said in an earlier interview.

The DOE has been pushing for an LNG facility to prevent consumer electricity rates from spiking once the reserves of Malampaya natural gas facility is depleted some 10 years from now.

The Malampaya gas-to-power facility fuels three gas-fired power plants with a total generating capacity of 2,700 megawatts (MW) equivalent 30 percent of the power generation requirements of Luzon.

Connected to an onshore gas plant in Batangas, the Malampaya offshore facility in Northern Palawan was inaugurated in 2001. —VDS, GMA News