Philippines Short-lists Three Groups for LNG Terminal Project

By Florence Tan
Tuesday, October 30, 2018

The Philippines has short-listed three different groups to build and operate its first liquefied natural gas (LNG) import terminal and hopes to nominate one by November, its energy minister said on Tuesday.

Short-listed companies were chosen from 18 groups that submitted proposals for the project, Alfonso Cusi told Reuters on the sidelines of the Singapore International Energy Week.

They include state-owned Philippines National Oil Company (PNOC), which is seeking a partner for the project, Cusi said, while Tokyo Gas has partnered with the Philippines' First Gen Corp.

China National Offshore Oil Corp (CNOOC) is also in the running, although it has yet to firm up a local partner, Cusi said. CNOOC has been in talks with the Philippines' Phoenix Petroleum as a partner, he added.

"Hopefully we can have a conclusion on which proposal to accept by the end of November," Cusi said.

The Philippines is expected to start importing LNG to feed gas-fired power plants in Batangas province, south of the capital Manila, as domestic gas supplies from its Malampaya field are set to run out in 2024.

Besides meeting local demand, the Philippines also hopes the terminal would become an LNG trading hub for the region, Cusi said.

"We are already the de-facto transhipment port for LNG to China," Cusi said, adding that large cargoes are often broken up into smaller parcels for deliveries to China via ship-to-ship transfers off the Philippines.

"We should institutionalize this before someone else does."

PNOC last week formally announced it was seeking a joint-venture partner to design, build, finance, operate and maintain an LNG hub in Batangas Bay, near the gas-fired power plants supplying electricity to the country's main Luzon island.

Bidders have until Dec. 21 to submit eligibility documents to PNOC.

A First Gen spokeswoman said the company has been open to taking in a partner for the LNG project, but she was not aware of any joint venture agreement or talks between First Gen and Tokyo Gas. First Gen operates four of the country's five gas-fired power plants.

Tokyo Gas declined to comment.

Phoenix Petroleum, owned by local businessman Dennis Uy who helped fund President Rodrigo Duterte's 2016 election campaign, in June signed a memorandum of understanding with CNOOC Gas and Power Group Co Ltd to "study, plan and develop" an LNG project in the Philippines.

Last week, Phoenix said Philippine oil and gas exploration firm PXP Energy Corp may be granted "preferential rights" to acquire up to 49 percent of Phoenix's interest in the planned LNG joint venture with CNOOC.


(Reporting by Florence Tan; Additional reporting by Enrico dela Cruz and Manolo Serapio, Osamu Tsukimori; Editing by Christian Schmollinger and Richard Pullin)

Categories: Asia Government Government Update Tankers Ports LNG

Related Stories

Subsea7 Secures Work at Black Sea Field off Türkiye

CIP, Petrovietnam Team Up for Offshore Wind Project in Vietnam

Seatrium Signs FLNG Vessel Upgrade Deal for Golar LNG

EnQuest Enters Indonesia with Operatorship PSCs for Two Exploration Blocks

Inpex Kicks Off FEED Work for Abadi LNG Scheme Offshore Indonesia

Sapura Energy Rebrands to Vantris Energy

PTTEP Buys Chevron's Hess Unit Share of Southeast Asia’s Offshore Block for $450M

China Starts Production at Major Oil Field in Bohai Sea

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

Current News

Technip Energies Gets FEED Job for Inpex’ Abadi LNG Project in Indonesia

Keppel, Seatrium in $53M Arbitration Case Over Brazil Corruption Scheme

Subsea7 Secures Work at Black Sea Field off Türkiye

CIP, Petrovietnam Team Up for Offshore Wind Project in Vietnam

Seatrium Signs FLNG Vessel Upgrade Deal for Golar LNG

EnQuest Enters Indonesia with Operatorship PSCs for Two Exploration Blocks

PXGEO Nets First Seismic Survey off Malaysia

SPE Offshore Europe 2025 set to drive transformational change for the energy sector

Shipbuilder Delivers Fast Crew Boat Pair to Aesen

Norwegian Oil Investment Will Peak in '25

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com