Chelsea Logistics, Pnoc Plan LNG Logistics Hub in Philippines

Manila-listed shipping and logistics firm Chelsea Logistics Holdings and state-owned Philippine National Oil Company (Pnoc) are exploring a possible joint development of LNG logistics hub at Batangas, Chelsea Logistics said May 7 in a stock exchange filing.

The two parties are looking to develop a fuel and LNG storage and a terminal for commercial and logistics use at Mabini, Batangas. The project will be part of the development plan for a downstream LNG network between an affiliate of Chelsea – the Phoenix Petroleum Philippines, China’s Cnooc Gas and Power Group and Pnoc.

Tanglawan Philippine LNG —a joint venture between Phoenix and Cnooc in March signed a memorandum of understanding with Pnoc to allow the state-owned firm to be part of the LNG project.

“This collaboration with Pnoc provides opportunities for both Chelsea’s shipping and logistics businesses. Further to the potential inclusion of a fuel and LNG storage and terminal to our logistics arm, we are studying how to serve the future vessel requirements for the transportation of PNX’s LNG products,” said Chelsea CEO Chryss Alfonsus V. Damuy.

Tanglawan plans to start work on the 2.2mn mt/yr terminal this year, with commercial operations targeted to start by 2023. The new venture also aims to develop a gas-fired power generation facility with up to 2,000 MW installed capacity.