Following the Department of Energy’s Notice to Proceed issued to Tanglawan Philippine LNG Inc.—a planned joint venture between Phoenix Petroleum Philippines Inc. (PSE: PNX) and CNOOC Gas and Power—to build an LNG regasification terminal in Batangas, the representatives from Phoenix are now in talks with the Philippine National Oil Co. (PNOC) in hopes to secure a strategic alliance with the state-owned firm in its LNG Hub project.
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.
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.
This year, Tanglawan project is expected to break ground its regasification and receiving terminal with a capacity of 2.2 mtpa.
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.
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.
CNOOC Gas and Power Group Co. Ltd, China’s largest LNG importer and terminal operator, is discussing the Tanglawan joint venture with the Philippines’ fastest growing oil company, Phoenix Petroleum. The proposed joint venture with CNOOC has been approved by the Board of Directors of Phoenix Petroleum on January 31, 2019.