By
Lenie Lectura - December 11, 2017
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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