Thursday, February 1, 2018

ADB, PNOC ink deal on LNG advisory services



 (The Philippine Star) |

MANILA, Philippines — The Asian Development Bank (ADB) will be advising the Philippine National Oil Co. (PNOC) on the liquefied natural gas (LNG) hub project in Batangas which is planned to be carried out with private sector participation this year. 
ADB announced that a transaction advisory services agreement was signed between Takeo Koike, officer-in-charge of ADB’s Office of Public-Private Partnership (OPPP), and Reuben Lista, president and CEO of PNOC. 
Under the agreement, OPPP will advise and assist PNOC in all aspects of the project including the award and execution of the final project project agreements. 
The project, which would cost up to $2 billion, will consist of a regasification terminal, storage, power plant and other related infrastructure. 
Due to the imminent depletion of domestic gas reserves at the Malampaya gas field in Palawan, which provides a substantial amount of power supply in the country, PNOC is developing  sustainable gas supply strategy through the establishment of an LNG hub in Batangas.
ADB said the project is in line with its “increasing focus on environmentally sustainable infrastructure and private sector participation.” 
 “The Philippines’ first LNG hub will help in ensuring long-term energy security to the Philippines and source a cleaner energy resource,” said Siddhartha Shah, principal PPP specialist. 
“It will also increase energy access and create new demand in the power, transportation, and industrial sectors in Luzon and in neighboring islands,” he added. 
State-run PNOC has received several unsolicited proposals for the project, some of which are from three foreign firms: Korea Electric Power Corp., Lloyds Energy Group and China National Offshore Oil Co.
PNOC said bidding out the project is also an option if none of the unsolicited proposals meet government requirements.

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