The Energy Department allowed Tanglawan Philippine LNG Inc., controlled by Phoenix Petroleum Philippines, to “re-evaluate” its proposed liquefied natural gas project after Phoenix Udenna Corp. acquired a stake in the Malampaya gas project in northwest Palawan.
“Tanglawan, they asked for... suspension on their application because of the development of the Chevron share acquisition... We will allow them to reevaluate their position,” Energy Secretary Alfonso Cusi said.
Tanglawan sought the suspension in the wake of Udenna’s acquisition of the entire 45-percent shareholdings of Chevron Malampaya LLC, a wholly-owned subsidiary of Chevron Philippines Ltd., in the $4.5-billion Malampaya gas project.
Phoenix and Udenna are both controlled by Davao businessman Dennis Uy. Phoenix was scheduled to forge a joint venture agreement with CNOOC Gas and Power Group Co. Ltd., a unit of China National Offshore Oil Corp. and PNOC for the LNG project.
Cusi said the suspension was not open-ended and that Tanglawan was given a certain period to review the project.
Tanglawan secured an NTP from DOE on December 21, 2018. The company asked for an extension on June 20, 2019 after the NTP expired on June 22. The NTP was supposed to expire again on December 20, 2019.
UC Malampaya Philippines Pte Ltd., a wholly-owned subsidiary of Udenna, signed an agreement on October 25, 2019 to acquire 100 percent of the shares of Chevron Malampaya.
Other shareholders of the Malampaya gas project under service contract 38 are Shell Philippine Exploration B.V. and state-owned PNOC Exploration Corp., a subsidiary of Philippine National Oil Co.
Udenna is establishing a plan for the future development of the Malampaya field and its surrounding fields to ensure the future of Philippines’ energy security.