Tuesday, November 27, 2018

PNOC suspends process on LNG partner selection



Published November 23, 2018, 10:00 PM By Myrna M. Velasco

State-run Philippine National Oil Company (PNOC) has formally suspended proceedings on its search for a strategic partner on planned floating storage regasification unit (FSRU) project for the country’s liquefied natural gas (LNG) hub aspiration.
In a new bulletin issued to prospective bidders, the company stipulated that the scheduled pre-eligibility conference on December 4 and the submission of eligibility documents on January 22, 2019 are “postponed until further notice.”
The deferment of PNOC’s search for a strategic partner was first hinted to the media by the Department of Energy (DOE) – with it indicating that the joint venture of businessman Dennis Uy and China National Offshore Oil Corporation (CNOOC) is already leading in the investor-choice for the propounded LNG facility.
The proposed LNG venture will underpin the reset of the Philippine gas market following much-anticipated production decline at the Malampaya field.
PNOC has been counting on the offers of several prospective foreign partners on its proposed FSRU facility which may command investment ranging from US$600 million to US$1.4 billion.
It has been the Asian Development Bank (ADB) that it tapped as transaction advisor on tapping a co-venturer for the planned 3.0 million tons per annum of LNG import terminal.
PNOC is originally in the shortlist of the energy department – along with other investor-groups to potentially set up the country’s LNG import facility.
Energy Secretary Alfonso G. Cusi previously told media that they will start selecting the LNG investor by the end of this month, so project developments could already kick off next year.
PNOC itself has changed configuration on its quest for a strategic partner – that instead of pursuing 5.0 mtpa capacity for the LNG terminal, that had been preliminary reduced to the level of current industry needs and will just ramp up eventually according to market demand expansion.
The state-run company also carved out the proposed banked gas sale and power plant development from its original project blueprint.

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