Phoenix Petroleum to put up initial investment of P250M in LNG project with CNOOC

Phoenix Petroleum Philippines Inc. is initially investing P250 million in its liquefied natural gas (LNG) project with China National Offshore Oil Corp. (CNOOC).

In a regulatory filing submitted by Phoenix assistant vice president Socorro Cabreros on Friday, the oil firm said its board of directors has approved the initial investment in the LNG project.

The money will be used to form and organize a new company or wholly-owned subsidiary which will manage Phoenix’s interest in the LNG hub, including a receiving terminal for LNG and a gas-fired power plant.

The joint venture cooperation with CNOOC to establish and operate various LNG-related trade and services was also approved.

The joint venture Tanglawan Philippines LNG will build an LNG hub with a yearly capacity of 5 million metric tons. The hub is estimated to cost $1 billion to $2 billion.

Early last month, the Department of Energy (DOE) gave Phoenix and CNOOC the green light to proceed with LNG project in Batangas.

The DOE is bent on pushing for an LNG terminal facility to prevent electricity rates from shooting up once the reserves of Malampaya natural gas facility are depleted some 10 years from now.

Malampaya supplies the LNG requirements of three power plants with a combined generating capacity of 2,700 megawatts—enough to meet up to 30 percent of Luzon’s electricity needs, or about 20 percent of the country’s total electricity requirements.

Phoenix is led by Davao-based businessman Dennis Uy. —Ted Cordero/VDS, GMA News