Wednesday, December 13, 2017

PNOC asks foreign companies to resubmit bids for LNG hub



By Lenie Lectura -

THE Philippine National Oil Co. (PNOC) has asked two foreign firms to resubmit unsolicited proposals for a partnership with the state firm to put up a $2-billion liquefied natural gas (LNG) terminal.
PNOC President Reuben Lista said the proposals of Lloyds Energy Group with partner Itochu and Kepco that were received by the technical working group (TWG) of the state firm are incomplete.
“They lack in eligibility requirements. Under the process of unsolicited proposals, the first to submit will be evaluated first,” Lista said. “We cannot entertain a new proposal unless we are finished with the evaluation of the previous proposal.”
As such, PNOC has asked Lloyds and Kepco to resubmit their proposals.
Two more proposals came in but these were submitted to the Department of Energy (DOE). “The problem with the proposals from China National Offshore Oil Co. [CNOOC] and Tokyo Gas is that their proposals were not sent to us but to the DOE. So, they will also have to resubmit,” Lista added.
With this, all were given chances to resubmit. Once they have submitted, Lista said their financial and technical proposals would be forwarded to PNOC’s consultant for evaluation.
Lista noted PNOC is inclined to tap the Asian Development Bank (ADB) as consultant. “The ADB is informally our consultant now. They will submit a proposal to us,” he said, adding that it was the TWG that recommended the ADB.
Lista said in an interview yesterday they are in talks with the ADB to provide technical consultancy in pushing for the country’s LNG hub, as recommended by the agency’s technical working group (TWG).
“We are negotiating with the ADB,” he added. “They are going to present a proposal this week. The TWG coordinated with them. It is the TWG that recommended the ADB.”
PNOC was tasked by the DOE to develop an integrated LNG hub with storage, liquefaction, regassification and distribution facility, as well as a reserve initial power-plant capacity of 200 megawatts (MW).
Energy Secretary Alfonso G. Cusi said the government is aiming to turn the Philippines into a hub for LNG, amid a depletion of natural gas from the Malampaya gas field in Palawan in less than a decade. Currently, around 3,500 MW of power-plant capacity is dependent on the country’s sole natural-gas source.
“We’ve started with the rollout of the Batangas LNG terminal by 2020 to safeguard against the  anticipated depletion of the Malampaya gas facility in 2024,” Cusi said earlier.
Other areas being considered for LNG hub, Cusi added, are “many areas in Mindanao and in Subic.”
The DOE has scheduled the groundbreaking for the country’s first LNG hub in 2018, with project completion still being eyed within the six-year term of President Duterte.

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