Phoenix Petroleum Philippines Inc. yesterday said it had signed a memorandum of understanding (MOU) with Beijing-based CNOOC Gas and Power Group Co. Ltd. for a potential partnership in a liquefied natural gas (LNG) terminal project in the Philippines.
The announcement shows that the domestic LNG market is heating up, as the anticipated depletion of Malampaya natural gas—on which several power plants with a total generating capacity of more than 3,000 megawatts currently depend—in 2024 approaches.
In a disclosure to the Philippine Stock Exchange, Phoenix said the MOU covered cooperation to “study, plan, and develop” an LNG receiving terminal in the country.
This “will potentially broaden Phoenix Petroleum’s portfolio of new businesses, which now includes LPG (liquefied petroleum or cooking gas), convenience retailing, asphalt, and e-transactions,” the company said.
Last month, First Gen Corp. said it was inclined to develop its own LNG terminal to provide fuel to its power plants as well as other potential customers instead of taking part in a government-led consortium for a similar project.
These power plants include the 1,000-MW Sta. Rita complex, 500-MW San Lorenzo facility, 414-MW San Gabriel plant and the 97-MW Avion plant—all in Batangas.
At the same time, EDC’s geothermal plants saw earnings go down to $14 million from $32 million due to damage caused by Typhoon “Urduja” that hit Leyte in December 2017.
“The gas plants continue to demonstrate their importance to the grid by serving consumers with power needed at critical periods of the day,” the company said.
“We continue to progress with the development of our LNG regasification facility, which we have been doing for the past five years,” said First Gen president and chief operating officer Francis Giles B. Puno.