A consortium of China National Offshore Oil Corp (CNOOC) and the fuel retailer Phoenix Petroleum Philippines has initiated negotiations with the state-held oil and gas firm Philippines National Oil Company (PNOC) to establish a strategic partnership to build a new US$2bn LNG import and regasification terminal project in Batangas (Philippines). The three companies could sign a memorandum of understanding (MoU) in the coming weeks.
The CNOOC-Phoenix Petroleum consortium received governmental support for the terminal project in January 2019 at the expense of other competitors, one of which was PNOC. The current proposed project will be developed by a special purpose joint venture (JV) called Tanglawan Philippine LNG. It will have an operational capacity of 2.2 Mt/year (2.97 bcm/year) and commercial operations are scheduled to start by 2023. Besides, it would also entail the development of an associated 2,000 MW gas-fired power plant. Investments are set to reach US$686m for the terminal and US$1.3bn for the power plant.
Once built, the terminal may also become an important LNG trade hub in the region. It is expected to meet the gas needs of the gas-fired power plants in Batangas province, as domestic supply from the Malampaya field will stop production by 2024.
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