First Gen Corp. questions PNOC decision to open another round of offer submissions for Malampaya

By Lenie Lectura - September 6, 2018

https://businessmirror.com.ph/first-gen-corp-questions-pnoc-decision-to-open-another-round-of-offer-submissions-for-malampaya/

FIRST Gen Corp. of the Lopez group said it sought clarification from the Philippine National Oil Co. (PNOC) following the state firm’s decision to hold another round of offer submissions for the sale of unused Malampaya natural gas, more known as banked gas.

First Gen Vice President for Business Development and Head of Gas Business Unit Jerome Cainglet said it was “not clear” why PNOC again asked for offers.

“We did submit an offer last July. We are now asking for the status. There was no formal rejection. What will happen to the offer we submitted last July?” said Cainglet.

First Gen, he added, had met with PNOC. “We did clarify the status, and it’s still under discussion. We’re not able to get a response.”

PNOC issued notice last June it was selling its banked gas comprising of 97.67 petajoules. The deadline set for the submission of proposals was last July 23.

However, PNOC executive assistant Jannefer Pelayo, a lawyer,  had said “no one qualified.”

This prompted PNOC to issue another notice.

“PNOC is offering it again for sale through the submission of offers, which will be evaluated and further negotiated to get the best value for the government. PNOC will negotiate for the best offer subject to the final approval of the Board of Directors. We will study if there is a need for a Swiss challenge,” she said.

The deadline was last September 3. PNOC did not respond to questions when asked if it received offers last Monday.

In the same notice, PNOC said the maximum average daily quantity deliverable to the buyer is 32.22 terajoules per day. The end date delivery is until February 23, 2024, and the delivery point is the Malampaya Onshore Gas Plant in Tabangao, Batangas.

Those with acceptable offers will be required to submit qualification documents to establish their legal, technical and financial eligibility.

PNOC said last year that proceeds, amounting to about P11.9 billion, from the sale of the banked gas will be utilized to finance government’s plan to put up a liquefied natural gas (LNG) hub.

PNOC had said it was swamped with offers from foreign and local firms for a partnership in the former’s plan to put up an integrated LNG hub with storage, liquefaction, regassification and distribution facility, as well as a reserve initial power plant capacity of 200 megawatts. This is targeted to be completed in 2020.