PNOC, Lloyds team up for LNG development
MANILA, Philippines — State-run Philippine National Oil Co. (PNOC) has teamed up with Dubai-based Lloyds Energy to explore the possibility of developing liquefied natural gas (LNG) facilities in the country.
PNOC said it signed a memorandum of understanding (MOU) with Lloyds Energy to “explore cooperative ways for the development of LNG facilities and natural gas generation plants and other related activities” in government properties in Limay, Bataan, Bauan, Batangas, and Mabini, Batangas.
The MOU also explores the viability of oil importation and storage, the state-run firm said.
In November last year, Lloyds Energy submitted its interest to partner with PNOC to build an integrated LNG hub with storage, liquefaction, regasification and distribution facility, as well as a power plant capacity
Last April, the Dubai LNG firm said it passed the completeness check for the PNOC LNG hub project. This is in accordance with the documentary requirements stated in the Build Operate and Transfer (BOT) Law and its Revised Implementing Rules and Regulations.
PNOC president and chief executive officer Reuben Lista said the team-up with Lloyds Energy would not affect its prospective partnership with Phoenix Petroleum Philippines Inc. and China National Offshore Oil Corp. (CNOOC).
“Both are exploratory and without exclusivity clauses. These steps will encourage also the private sector to consider these directions,” he said.
Last March, PNOC signed a separate MOU with Phoenix Petroleum and CNOOC Gas and Power Group Co. Ltd. to explore and discuss business opportunities and cooperation in relation to the equity investment in Tanglawan Philippine LNG Inc.
The MOU will also allow PNOC to provide a strategic alliance in further developing the Tanglawan LNG project, with the government-run corporation’s involvement in the areas of pipeline infrastructure and franchise, banked gas, equity, and other marketing opportunities.
Tanglawan Philippine LNG was granted a notice to proceed by the Department of Energy (DOE) last year to build the LNG hub project with a capacity of 2.2 metric tons per annum (mtpa). The facility is targeted to start commercial operations by 2023.
For the power component, Energy Secretary Alfonso Cusi said Lloyds is proposing to put up a merchant power plant.
A merchant plant has no bilateral contracts and sells its output to the wholesale electricity spot market (WESM).
“It’s a welcome development as it is about the 1,000 or 1,200 megawatt (MW) LNG merchant power plant that Lloyds intends to put up in the Philippines. This will help augment our supply,” he said.