A. Brown buying Vires Energy ahead of LNG plant project

By Lenie Lectura -October 4, 2019
from Business Mirror

PUBLICLY listed firm A. Brown Co., Inc. (BRN) is buying Vires Energy Corp. (VEC), which is joining the LNG (liquefied natural gas) bandwagon.

BRN said Thursday that it entered into a memorandum of agreement (MOA) with Argo Group Pte. Ltd. for the possible acquisition by BRN of approximately 99.995 percent of the outstanding capital of VEC.

VEC, owned by Argo Group, is the proponent for the integrated floating LNG storage and regasification terminal and the 506-megawatt (MW) floating natural gas-fired power plant in Barangay Simlong, Batangas City, for which VEC has already secured BOI registration.

“The MOA entered into is a preliminary agreement and the prospective acquisition will be concluded after the completion of the customary due diligence period of a maximum period of 180 days,” said BRN on Thursday.

VEC earlier received approval to conduct a grid impact study on the proposed LNG power project. It also contracted Waller Marine Inc. of Houston, Texas, in 2016 to produce the front-end engineering design for a 400-MW floating power plant.

It also signed technology license agreements with Sevan Marine’s subsidiary, HiLoad LNG AS, for an LNG receiving and regasification terminal in the Philippines.

A separate engineering service contract with HiLoad LNG will provide design and engineering work.

VEC’s LNG project was earlier estimated to cost $750 million.