ADB evaluating for PNOC CNOOC’s LNG project proposal
By Myrna M. Velasco – August 9, 2018, 10:00 PM
from Manila Bulletin
The Asian Development Bank (ADB), which is the transaction advisor of state-run Philippine National Oil Company (PNOC) in tapping a strategic partner for its liquefied natural gas (LNG) infrastructure chain ventures, has started evaluating the tender submitted by China National Offshore Oil Corporation (CNOOC) Ltd.
Energy Secretary Alfonso G. Cusi
“The evaluation is now with CNOOC – this is being evaluated by our advisor,” PNOC Board Chairman and Energy Secretary Alfonso G. Cusi said.
CNOOC just recently signed a deal with Filipino firm Phoenix Petroleum Philippines Inc. on planned LNG joint venture in the country.
The first two offers from foreign companies – one from Korea Electric Power Corporation and the second from Lloyds Energy Group – were already rendered “not acceptable” by the state-run firm; following presentation of their bid results to the PNOC Board.
The government initially expected milestones on the PNOC-led LNG projects by first half of 2018, but Cusi admitted processes were already confronted with delays just in the selection of strategic partner alone.
“We already encountered delays because the first and second proponents did not meet the standard – first was Kepco and second was Lloyds Energy,” he said.
The state-owned company penciled in as much as US$2.0 billion capital outlay for the planned LNG ventures – that will range from import terminal, power plant and gas distribution networks.
The capacity of the LNG import terminal has been blueprinted at 5.0 million tons per annum, enough to meet the gas requirements of the country’s existing gas-fired power plants and even has room for capacity expansions on that technology sphere.
PNOC packaged a tie-up arrangement that will require partners into setting up a hub for the country’s gas sector plus integrating the banked gas as an “equitized asset” of the state-run firm in the joint venture deal.
However, the company eventually decided to bid out the “banked gas” separately and it is another matter that PNOC has been giving its attention to at this time.
PNOC received at least seven proposals on its LNG project JV deal, so the advisor will have four more to work on in the evaluation process.
