MRC Allied puts on hold plan to venture into LNG

By Lenie Lectura – May 31, 2019
from Business Mirror

MRC Allied Inc. has put on hold plans to venture into the liquefied natural gas (LNG) business.

“It has been recommended by the technical team of MRC that the LNG projects of the company be put on hold considering that the Department of Energy [DOE] is finalizing its guidelines and implementing rules and regulations [IRR] governing LNG projects. In the meantime, MRC will be focusing its efforts on completing its existing solar PV projects,” the MRC said in a disclosure on Thursday.

MRC Allied and China Energy Engineering Group Guangdong Power Engineering Co. Ltd. (GPEC) signed in November 2017 a memorandum of understanding (MOU) to invest, develop, construct and operate LNG projects in the Philippines.

Both parties were expected to enter into discussions and conduct due diligence to explore the possibility of doing LNG projects a year after the MOU was signed.

“There is a growing interest and increasing excitement about prospects in the LNG industry in this country. We are looking forward to having solid partnerships with foreign investors,” MRC Chairman Carlos Jose Gatmaitan said.

“We are likewise excitedly waiting for the government to come up with the legal and regulatory framework that will govern the LNG industry. We heard that the Department of Energy will release the rules very soon,” MRC had said in 2017.