The Department of Energy (DOE) has cancelled Phoenix Petroleum Philippines’ application to build a liquefied natural gas (LNG) facility, according to one of its officials.
During a Senate hearing on Tuesday, Energy Asec. Leonido Pulido III said his department has called off the notice to proceed it previously issued to Phoenix-controlled Tanglawan Philippines LNG.
Pulido pointed out that the DOE was forced to cancel Tanglawan’s NTP, saying it essentially withdrew its plans due to financial constraints and other difficulties regarding its project proposal.
The DOE granted Tanglawan its NTP in December 2018. It was supposed to build the country’s first LNG import terminal in partnership with the China National Offshore Oil Corporation. The proposed facility, supposedly located in Bauan, Batangas, was expected to have a capacity of 2.2 million tonnes per year, with commercial operations aimed to begin by 2023.
Tanglawan’s NTP application was later suspended by the DOE following a request made by the company in December 2019. This was in light of Udenna Corporation’s acquisition of Chevron’s 45% stake in the Malampaya gas-to-power project, which was completed in March 2020.
Udenna, controlled by Davao-based businessman Dennis Uy, is the mother firm of Phoenix, the country’s third largest oil player.