PNOC receives more offers for $2-B LNG terminal project

By Danessa Rivera (The Philippine Star) | Updated January 5, 2018 - 12:00am

http://www.philstar.com/business/2018/01/05/1774618/pnoc-receives-more-offers-2-b-lng-terminal-project

MANILA, Philippines — New offers were submitted by First Gen Corp., Energy World Corp., PT. Jaya Samudra Karunia, and PT PGN LNG Indonesia/PT Bosowa Corporindo with their local partner MOF Corp., PNOC spokesperson Ryan Tanjutco said.

Completing the list are the previous submissions of Korea Electric Power Corp. (Kepco), Lloyds Energy Group and China National Offshore Oil Co. (CNOOC), he said.

However, PNOC rejected the first two offers from Kepco and the consortium of Lloyds Energy Group and Itochu Corp.

“Kepco’s proposal was returned because it did not comply with the requirements of an unsolicited proposal and they did not resubmit,” Tanjutco said.

“Lloyds Energy’s first proposal was also returned but they resubmitted ahead of the other proponents and their proposal is the one being currently evaluated,” he said.

Meanwhile, CNOOC has finally submitted its proposal to PNOC, which was first sent to the Department of Energy (DOE).

PNOC opened its doors to receive more unsolicited proposals until Dec. 31. The Philippine government decided to accept unsolicited bids for the LNG project after talks for a government-to-government (G2G) partnership fell through.

PNOC was tasked to put up an integrated LNG hub with storage, liquefaction, regassification and distribution facility, as well as a reserve initial power plant capacity of 200 megawatts (MW).

It is looking to build the LNG hub by piecemeal, starting with a floating storage and regassification unit with power plant (FSRU-PP) completed by 2020.

The FSRU-PP project, which will have an initial capacity of 200 MW and scalable to 800 MW, is expected to address the country’s emergency power needs in times of natural calamities.

Phase 2 of the project will include onshore facilities such as a five metric tons per annum (MTPA) storage units, regassification, power plant and distribution/redistribution.

Energy Secretary Alfonso Cusi earlier said construction of the LNG hub would start within 2018, targeting it to become an LNG hub in Asia.

The project is intended to take advantage of the growing gas demand in the region and to secure gas requirements ahead of the Malampaya gas depletion by 2024.

The Malampaya gas project supports the 3,500 MW requirements of gas-fired power plants in Luzon.