Phoenix firms up LNG partnership with state-owned China oil explorer

MANILA, Philippines — Listed independent oil firm Phoenix Petroleum Philippines Inc. has firmed up plans to partner with China National Offshore Oil Co. (CNOOC) to pursue its integrated liquefied natural gas (LNG) project.

In a disclosure to the Philippine Stock Exchange yesterday, Phoenix said its board gave the company the authority to enter into “joint cooperation or venture” with CNOOC Gas and Power Group Co. Ltd.

The partnership will be for the operation and establishment of various LNG related trades and services under the LNG Integrated Hub Project.

In June last year, Phoenix entered into a memorandum of understanding (MOU) with CNOOC Gas and Power Group to study, plan, and develop an integrated LNG project in the country.

The Phoenix board also authorized the company to form and organize a new wholly owned subsidiary for the LNG project.

“Tanglawan (Philippines LNG Inc.) will be the JV company,” company vice president for external affairs Raymond Zorrilla said in a text message.

For the JV company, Phoenix will make an initial investment of P250 million, subject to stockholders’ approval.

Last December, the Department of Energy (DOE) issued the notice to proceed to Tanglawan Philippines to build an LNG terminal in Batangas,

The Phoenix-CNOOC team-up plans to break ground within the year for the regasification and receiving terminal with a capacity of 2.2 metric tons per annum, with commercial operations targeted to start by 2023.

Phoenix Petroleum said the LNG facility would help support the demand for a clean and reliable energy source in Luzon and contribute to the sustainable development of the Philippine economy.

The integrated long-term project also includes a gas-fired power generation facility with up to 2,000 megawatts (MW) installed capacity.

Tanglawan is initially building a 1,100-MW gas-fired power plant to become the offtaker of the LNG supply.