Dennis Uy, China firm may bag major oil contract
MANILA, Philippines – After bagging the 3rd major telecommunications player slot, Davao City-based businessman Dennis Uy may secure another major contract, this time a liquefied natural gas (LNG) import terminal.
Energy Undersecretary Donato Marcos said on Thursday, November 22, that the evaluation for the application of Uy's Phoenix Petroleum and China National Offshore Oil Corporation (CNOOC) is "almost complete."
Marcos said the Department of Energy (DOE) will review the proposal of the tandem, called Tanglawan Philippines LNG Incorporated, within 10 days.
Tanglawan plans to build an LNG hub with an initial capacity of 5 tons per annum in two sites in Batangas. The project is estimated to cost as much as $2 billion and has a capacity of at least 1,000 megawatts.
Tanglawan is among the 23 firms that expressed interest to put up an LNG terminal in the Philippines, but so far the only one which has submitted an application.
This development comes after Uy bought 340 million shares in Manny Pangilinan's PXP Energy last October.
PXP Energy intends to use the funds raised to fund oil exploration activities. (READ: 'Forces' in gov't pushed for PH-China oil deal – Locsin)
The deal also specifies that Uy's holding firm, Dennison Holdings Corporation, will grant "preferential rights" to PXP Energy and acquire up to 49% interest in the joint venture of Tanglawan for the LNG terminal.
Meanwhile, PXP Energy has expressed interest in oil exploration activities in the West Philippine Sea. – Rappler.com