Philippine independent oil company Phoenix Petroleum has entered talks with the Philippine National Oil Co. (PNOC) in hopes to secure a strategic alliance with the state-owned firm in its $2 billion LNG Hub project.
Talks follow the Department of Energy’s notice to proceed issued to Tanglawan Philippine LNG, a planned joint venture between Phoenix Petroleum and CNOOC Gas and Power, to build an LNG regasification terminal in Batangas.
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, Phoenix Petroleum said in a statement.
With PNOC on board, Phoenix Petroleum 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.