Monday, May 7, 2018

PNOC weighs $2-B LNG infra offer


Published By Myrna M. Velasco

Dubai-headquartered Lloyds Energy had been the first accorded a “letter of completeness” on the ‘unsolicited proposal’ it had submitted for the US$2.0 billion worth of liquefied natural gas (LNG) chain of infrastructure projects of state-run Philippine National Oil Company.
A highly placed source has disclosed that the PNOC management’s sending of “letter of completeness” to the United Arab Emirates firm had been presented to the company’s board last week; and imprimatur to such was accordingly given.
Lloyds Energy is a LNG developer firm and has been touted on its expertise of providing chain of solutions to near-shore floating LNG facility concept. For the Philippines LNG venture, the UAE firm has been reported to be eyeing partnership with Tokyo Gas Co. Ltd.
It had been emphasized though that the correspondence is not a manifestation yet of any front-running chance in PNOC’s selection of a prospective partner on its LNG ventures.
Instead, the source noted that such is an “indication that the unsolicited offer complies with laws governing the selection of a partner by PNOC being a state-owned company – be it through a JV (joint venture) arrangement or a BOT (build-operate-transfer) deal.”
“Basically, the PNOC management informed the Board that it had already sent ‘letter of completeness’ to Lloyds Energy…it’s the first one to be given with that letter from its LNG project bidders,” the source stressed.
PNOC management indicated last week that it had shortlisted three prospective partners – based on the unsolicited tenders forwarded by at least seven investor-groups.
It has been emphasized that the same presentation of ‘letters of completeness’ will likely be done at the Board on its forthcoming meetings – at least two more offers are expected.
As further gathered, the PNOC management has also sought the nod of its Board on the crafting of criteria (legal, financial and technical terms) on ranking the tenders lodged by interested co-venturers. The Asian Development Bank has been tapped as transaction advisor.
And from the final selection that the state-run firm will have on its JV or BOT deal, that will still need to go through “Swiss challenge,” the mode of competitive selection that the Duterte administration has been setting forth for its infrastructure projects.
Given the lengthy processes yet that PNOC would need to hurdle on its partner pick, the timeframe of its LNG project implementation will already be pushed back to 2019.
On the roll of unsolicited offers’ submissions to PNOC have been China National Offshore Oil Corporation; First Gen Corporation; Indonesian firms PT Jaya Sumadra Karunia as well as PT Perusahaan Gas Negara LNG/PT Bosowa Corporindo and local partner MOF Corporation; and that of the Energy World Corporation.

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