Phoenix Petroleum Philippines Inc. is not keen on bidding to acquire 50 percent of the coal assets of AC Energy Holdings Inc., a unit of conglomerate Ayala Corp., and will instead focus on efforts to develop the liquefied natural gas industry.
“While we always welcome business opportunities, at this time, however, this may not be, given our LNG project,” Phoenix vice president for external affairs Raymond Zorrilla said.
AC Energy’s coal-fired power plants produce 1,300 megawatts or 80 percent of its total energy assets totaling 1,600 MW.
Its coal assets include investments in South Luzon Thermal Corp., which owns the 244-MW coal plant in Calaca, Batangas; the 632-MW-GNPower Mariveles coal plant in Mariveles, Bataan; the 1,336-MW GNPower Dinginin coal plant also in Mariveles; and the 540-MW GN Power Kauswagan in Lanao del Norte province.
Phoenix signed last week an agreement with CNOOC Gas and Power Group Co. Ltd., a subsidiary of China National Offshore Oil Corp., China’s largest LNG importer, and terminal operator, to study, plan and develop an LNG receiving terminal project in the Philippines.
“We prefer a change in mix in favor of LNG and away from coal,” Zorrilla said.
Phoenix said the agreement with CNOOC would broaden its portfolio of new businesses, which now include liquefied petroleum gas, convenience retailing, asphalt, and e-transactions.
Zorrilla earlier said the LNG opportunity would be an addition to the company’s expanding portfolio of new ventures that complemented and strengthened its core fuel business.
“As one of the largest LNG players in the world, CNOOC has the breadth of expertise and experience in the industry,” Zorrilla said.
CNOOC has already submitted an unsolicited proposal to state-run Philippine National Oil Co. to develop the country’s first integrated $2-billion LNG project.
CNOOC has also expressed interest to submit a separate proposal to the Energy Department for the planned LNG facility.