5 more firms want to partner with PNOC for 1st LNG hub

By Lenie Lectura – October 12, 2018
from Business Mirror

MORE firms have expressed interest to partner with the Philippine National Oil Co. (PNOC) to develop the country’s first liquefied natural gas (LNG) facility.

PNOC President Reuben Lista said five more firms are expected to submit soon their respective solicited proposals.

“The group of Chevron, NYK, Jera accompanied by an American consul representing an American firm, called PNOC and expressed their interest. In Russia, two companies expressed interest with a possible third as a supplier,” Lista said.

Last month Lloyds Energy Group of Dubai also expressed interest to partner with PNOC.

Officials of Lloyds Energy, including Chief Operating Officer David Howe and Executive Director Brett Wight met with Lista to express Lloyds Energy’s interest in pursuing several major projects with the PNOC to enhance and strengthen their relations through the establishment of joint-venture agreements and maximize the potential of their expertise and capabilities to develop the LNG industry in the Philippines, the company said.

PNOC earlier said that under the solicited scheme, it would open the tender to foreign and local firms, starting with the prequalification tender schedule within the month, with the selection streamlined to ensure the project will reach commercial operation before the end of the service contract for the Malampaya gas consortium in 2024.

Lista said the prequalification guidelines will be out soon.

Lloyds Energy, together with China Kaicheng Energy Ltd., has a proposal for the development and construction of an integrated LNG hub with storage, liquefaction, regasification and distribution facility, as well as a power plant capacity of 200 megawatts (MW) to 800 MW.

Aside from the LNG project, Lloyds Energy said it will also pursue other projects with the PNOC, particularly in the development of LNG facilities, oil reserves and the training of Filipino manpower for work in LNG industries in the Philippines and overseas.

The key features of the LNG project under PNOC’s solicited scheme are:

• Minimum capacity of three metric tons per annum (MPTA), equivalent to 3,000 MW to cover existing immediate needs with future increase to five MPTA;
• Phased development to cope with future market developments;
• Flexibility to allow Floating Storage and Regasification Unit (FSRU) in the first phase, but eventually the terminal will be land based as demand increases and to ensure greater security;
• Implemented as a joint venture with PNOC to ensure public oversight of the project development and operation; and
• PNOC would make site available in the Batangas area.

The LNG project is estimated to reach anywhere from $600 million to $1.4 billion.

Barring unforeseen circumstances, the tender process will be accomplished in six months, with start of construction to take immediately thereafter.

The PNOC said the solicited scheme will ensure the widest possible competition and achieve the lowest price for the country. It will also ensure the construction is on time, on the right specifications and at the right price for the country.