Groundbreaking for Tanglawan LNG hub eyed in May

By Lenie Lectura – March 11, 2019
from Business Mirror

TANGLAWAN Philippine LNG Inc. plans to break ground in May for its liquefied natural gas (LNG) hub project, with commercial operations targeted to start by 2023, government officials said last week.

“They are looking at having the groundbreaking early part of May, para mapabilis ang trabaho.Hinahabol natin yung two years magkaroon ng partial operation so that by 2024 there is already a substitute LNG in case gas in Malampaya depletes,” Energy Secretary Alfonso Cusi said.

Tanglawan is a joint venture between Phoenix Petroleum and CNOOC Gas and Power Group Co. Ltd., China’s largest LNG importer and terminal operator. Recently, the two firms signed a memorandum of understanding (MOU) with state-owned firm Philippine National Oil Co. (PNOC).

The MOU will allow the three companies to explore and discuss business opportunities and cooperation in relation to the equity investment in Tanglawan and other companies relating to the project, PNOC facilities, market development, PNOC banked gas and future energy projects.

“The group is being encouraged to conduct the groundbreaking before May 13,” PNOC President Reuben Lista said.

Cusi said PNOC and Tanglawan are trying to find ways to maximize the remaining 97.67 petajoules (Pj) of Malampaya banked gas, valued at $700 million to $750 million.

“No decision has been made. CNOOC expressed interest. It will make a study, whether to import or buy banked gas. PNOC is exploring all possible solutions, options in monetizing the banked gas,” Cusi said.

Tanglawan’s LNG project will consist of regasification and receiving terminal with a capacity of 2.2 metric tons per annum. The facility will help support the demand for a clean, competitive, and environment-friendly energy source in Luzon, and provide energy security for the nation.

It also aims to develop a gas-fired power-generation facility with up to 2,000 megawatts installed capacity.

“If their LNG power plant will push through, they will study if they can buy our banked gas. They will consider if it is viable for them to buy the banked gas from us when the power plant is operational,” Lista said.

He added one firm offered to purchase the banked gas albeit at “a low price.”  Lista did not name the firm, saying discussions are still ongoing.