Formal request to extend LNG project permit filed
Credit to Author: JORDEENE B. LAGARE| Date: Wed, 03 Jul 2019 16:16:50 +0000
TANGLAWAN Philippine LNG Inc., the joint venture of Phoenix Petroleum Philippines Inc. and CNOOC Gas and Power Group Co. Ltd. (CNOOC G&P), has formally lodged its request to extend its permit to build a liquefied natural gas (LNG) terminal in the country.
“According to the information gathered from Tanglawan Philippine LNG Inc., the company has already filed for an extension of the Notice to Proceed last June 20, 2019, and along with it, status updates of the proposed project were also submitted,” the Dennis Uy-led company said in a disclosure on Wednesday.
The consortium submitted its application just two days before the expiration of its Notice To Proceed (NTP), which the Department of Energy (DoE) issued on Dec. 21, 2018.
An NTP is valid for six months, but the Energy secretary holds the discretion to extend the permit.
In a phone interview with The Manila Times, DoE’s Oil Industry Management Bureau (OIMB) Director Rino Abad said the Centralized
Review and Evaluation Committee (C-REC) will schedule an operational meeting with Tanglawan to check on the status of the project and why the committee should grant them an extension.
“Tanglawan is scheduled for an operational meeting to ask the entity if they will be able to construct the planned LNG facility,” Abad said.
“The NTP can be extended for another six month or if they are no longer interested, we can withdraw or cancel their permit,” he added.
The Energy official said the NTP may be extended for another six months. However, in the event of force majeure, the permit may be extended for an indefinite period of time provided that the entity presents the work program on how it intends to resolve the issue hampering them to fulfill their contract.
The LNG investment, Abad pointed out, hinges on the financial closing since the government will not shell out any amount of money to develop the LNG regasification and receiving terminal.
Phoenix Petroleum previously disclosed it was targeting to begin commercial operations of its LNG hub by end-2023. It was previously planning to break ground the facility within this year.
The LNG project plans a regasification and receiving terminal with a capacity of 2.2 metric tons per annum. It also includes developing a gas-fired power plant with an installed capacity of up to 2,000 megawatts.
In March, Phoenix Petroleum; CNOOC G&P, a subsidiary of China National Offshore Oil Corp. (CNOOC); and state-run Philippine National Oil Co. (PNOC) signed a memorandum of understanding (MoU) for the planned LNG terminal in Batangas.
The MoU would enable the three firms to explore and discuss business opportunities and cooperation in relation to the equity investment in Tanglawan and other companies; PNOC facilities and banked gas; market development; and future energy projects.
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