According to Reuters, Phoenix Petroleum, a Philippines-based fuel retailer, has been granted approval from the government to build the country’s first LNG import terminal.
The terminal will reportedly be constructed in partnership with China National Offshore Oil Corp. (CNOOC). Phoenix added that its Tanglawan Philippine LNG Inc. unit will undertake the project, and is partnering with a unit of CNOOC Gas and Power Group Co. Ltd.
The project will be located south of Manila and, according to Reuters, Phoenix is looking to break ground on the project this year. Once completed, it is expected that the facility will have a capacity of 2.2 million tpy, with commercial operations scheduled to commence by 2023.
Reuters reports that the island nation has been looking to commence LNG imports in order to provide gas for its gas-fired power plants in Batangas. This comes as domestic gas supplies from its Malampaya field will run dry by 2024 at the soonest.
According to Reuters, Dennis Uy – the owner of Phoenix – is also looking to construct a 2000 MW gas-fired power plant. This will be part of the integrated project in Batangas province.
Although Phoenix has not revealed how much the project would cost, Reuters reports that the Department of Energy (DOE) has previously estimated that the total investment for such an import facility could reach as much as US$2 billion.
Reuters also reports that, whilst a number of companies (both foreign and domestic) had shown interest in the project, only three groups were shortlisted. These groups included Philippine National Oil Co., First Gen Corp. with Tokyo Gas, and, of course, the Phoenix-CNOOC group.
According to Reuters, the DOE has claimed that the viability of the other groups’ project proposals will determine whether or not they receive permission to commence construction.