Phoenix Petroleum Philippines and CNOOC Gas and Power Group (CNOOC G&P) have inked a memorandum of understanding (MoU) with state-owned Philippine National Oil (PNOC) for the Tanglawan Philippine LNG project.
The Tanglawan Philippine LNG project, which will be developed with an estimated investment of $2bn, will be an LNG regasification terminal that will come up in the Batangas province.
The MoU will enable the three companies to explore and discuss business opportunities and cooperation regarding the equity investment in the holding company of the LNG project and other companies associated with it, PNOC facilities, market development, PNOC banked gas, and future energy projects.
Phoenix Petroleum chief operating officer Henry Albert Fadullon said: “We warmly welcome the potential addition of PNOC in the LNG hub project we have been planning to venture on with CNOOC G&P.
“The LNG hub is a crucial project that will provide long-term solutions for our country’s energy needs, and the strategic alliance among our companies will further secure the continuous development of this venture.”
Construction on the regasification and receiving terminal is scheduled for this year, having secured the Philippines Department of Energy’s Notice to Proceed.
The Tanglawan Philippine LNG project, which will have a capacity of 2.2 mtpa, is targeted to begin commercial operations by 2023.
According to Phoenix Petroleum, the LNG hub project is expected to help support the demand for a clean, competitive, and environment-friendly energy source in Luzon, and deliver energy security for the Philippines. The project is also expected to contribute to the sustainable development of the Philippine economy.
The project partners are also looking to develop a gas-fired power generation facility with up to 2GW installed capacity as part of the integrated long-term project plan.
Phoenix Petroleum and CNOOC G&P, a subsidiary of China National Offshore Oil Corporation (CNOOC), signed a MoU for the LNG project last June. The Tanglawan Philippine LNG project is expected to expand Phoenix Petroleum’s portfolio of new businesses, which includes liquefied petroleum gas (LPG), convenience retailing, asphalt, and e-transactions.
Established in 2002, Phoenix Petroleum is engaged in trading and distribution of refined petroleum products, terminaling and hauling services, selling and marketing of LPG, bitumen, and convenience store retailing.