Phoenix Petroleum Philippines Inc. is putting up P250 million as initial investment in a liquefied natural gas (LNG) project with China National Offshore Oil Corp. (CNOOC).
Phoenix assistant vice president Socorro Cabreros told regulators on Friday that its board of directors gave management the go signal to proceed with the investment.
The partners are organizing a subsidiary entity that will manage Phoenix’s interest in the LNG hub, including a receiving terminal for LNG and a gas-fired power plant.
The partnership with CNOOC to establish and operate LNG-related trade and services was also approved.
The Tanglawan Philippines facility is capable of handling 5 million metric tons of LNG annually and would cost from $1 billion to $2 billion to construct.
Phoenix is led by Davao-based businessman Dennis Uy.