Tanglawan Philippine LNG Inc., a company controlled by Phoenix Petroleum Philippines of businessman Dennis Uy, asked the Department of Energy to suspend the notice to proceed with its liquefied natural gas project, a government official said Tuesday.
Energy Undersecretary Donato Marcos said Tanglawan sought for the suspension of the notice in the wake of Udenna Corp.’s acquisition of the entire shareholdings of Chevron Malampaya LLC, a wholly-owned subsidiary of Chevron Philippines Ltd. that owns a 45-percent stake in the Malampaya gas project in northwest Palawan.
Phoenix and Udenna are both controlled by Uy.
Phoenix is finalizing its joint venture agreement with CNOOC Gas and Power Group Co. Ltd., a subsidiary of China National Offshore Oil Corp. for the planned Tanglawan integrated LNG project.
“Both companies requested for suspension. Separately they [Phoenix and CNOOC] asked but on the same tone, asking for suspension. That’s why we are evaluating if the suspension is within the Philippine Downstream Natural Gas Rules,” Marcos said.
Tanglawan secured an NTP from DOE on Dec. 21, 2018 which stipulated that its LNG project will be located on a plot of land leased in Bauan, Batangas.
The department already extended Tanglawan’s NTP after it filed for an extension on June 20, 2019. Its original NTP expired on June 22 while the amended NTP was set to expire again on Dec. 20, 2019.
“There is a difference in their approach. The business model because they have been interested in the 45-percent participating interest of Chevron in the Malampaya. That changes the configuration,” Marcos said.
UC Malampaya Philippines Pte. Ltd., a wholly-owned subsidiary of Udenna, signed an agreement on Oct. 25 to acquire 100-percent of the shares of Chevron Malampaya.
Udenna is planning the future development of the Malampaya field and its surrounding fields to ensure the Philippines’ energy security.
“The company believes that LNG will serve as a critical energy source for the future as the Philippines transitions from conventional fuels to renewables in an attempt to de-risk its energy dependence on imported energy resources,” Phoenix said earlier.
Marcos said the DOE would review Tanglawan’s request specifically whether the PDNGR allows for a suspension of the NTP.
The department issued the PDNGR in 2017 which establishes the regulation with respect to the siting, design, construction, modification and maintenance of any project necessary for the development of the Philippine downstream natural gas industry.