The government of the Philippines could choose the winner this month as the first hub for liquefied natural gas in the country after many years of negotiations, various tendering processes and frequent delays, writes Amanda Battersbi.
Three candidates are still in conflict with several sources of industry. These are LLG Tanglavan Philippines, a joint venture between China National Offshore Oil Corporation (CNOOC) and local company Phoenik; Tokyo Gas with Filipino player First Gen; and the Philippine National Oil Compani (PNOC).
It is understood that the Department of Energy has come up with a short list of three, reduced from 18 proposals, some of which from the sources said that they did not meet the criteria for submitting a proposal.
"Based on PDNGR [Philippine Downstream Natural Gas Rules], anyone who has a qualification can participate, but there will be only one to set up the terminal, "said Philippine Energy Secretary Alfonso Cusi.
The PNOC is said to be tending to manage the project, but the company has to bring the partner.
A state-owned player has said that it is asking the joint venture to design, build, finance, operate and maintain an LNG center in Batangas on the island of Luzon.
Interestingly, PNOC has given potential partners a chance to submit documents on admissibility by December 21, while Cusi told Reuters last week that he hoped that the winning proposal would be decided by the end of November.
Cusi reiterated to the press that the Ministry of Energy will have the final say on which company will agree to a LNG terminal contract, for which nearly 20 international and local companies or consortiums have submitted their proposals.
CNOOC, through CNOOC Gas & Pover and Phoenik, have previously signed a memorandum of understanding for the study, planning and development of the LNG Reconstruction and Reconstruction Project in the Philippines.
Industrial sources state that CNOOC Gas & Pover would hire its sister company Offshore Oil Engineering Compani (COOEC) as the contractor for the construction of a LNG terminal if its offer is successful.
Australian VorleiParsons completed engineering work on his proposal and completed engineering and design front for the CNOOC proposal.
The proposed Philippines LNG hub and energy project, which could start working through the floating storage and regasification unit, has been debated for several years now.
The government may want to speed up the LNG import facility as soon as possible, but 2024 is seen as a time of cropping because the production of the Malagai Shield giant field of Malampai from the Philippines could have dropped significantly.