PNOC Could Partner with Tanglawan Philippine LNG

Manila-listed Phoenix Petroleum is in talks with state-owned Philippine National Oil Co. (PNOC) for a strategic alliance on the LNG project being developed by Tanglawan Philippine LNG —a planned joint venture between Phoenix and China’s Cnooc Gas and Power, it said February 13 in a stock exchange filing.

Last month, Tanglawan Philippines LNG was granted an approval by Philippines department of energy to build country’s first LNG import terminal.

“Following the Department of Energy’s Notice to Proceed issued to Tanglawan Philippine LNG Inc.—a planned joint venture between Phoenix Petroleum 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,” Phoenix said.

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, it added.

Phoenix said PNOC's involvement could be in the areas of pipeline infrastructure and franchise, banked gas, equity, and other marketing opportunities.

PNOC last month terminated the process to find a joint venture partner for its proposed LNG hub in the country.

Tanglawan plans to start work on the 2.2mn mt/yr terminal this year, with commercial operations targeted to start by 2023. The new venture also aims to develop a gas-fired power generation facility with up to 2,000 MW installed capacity.

The proposed joint venture with Cnooc was approved by the Phoenix board on January 31, 2019.