Danessa Rivera (The Philippine Star)
- July 8, 2019 - 12:00am
MANILA, Philippines — State-run
Philippine National Oil Co. (PNOC) is looking to secure a significant stake in
the 1,200-megawatt (MW) liquefied natural gas (LNG) merchant power plant that
Dubai-based Lloyds Energy is planning to build in the country, the energy chief
said.
Energy Secretary Alfonso Cusi said
PNOC and Lloyds are in discussions on the ownership of the LNG power facility
being planned.
He said Lloyds Energy and Japan’s
Mitsubishi Group will put up a 1,200-MW LNG power plant in the country.
“What PNOC would like to have is to
get a board seat so at least we have proper representation and (see) how things
are running,” Cusi said.
Both parties are also negotiating on
where to put up the power plant in state-owned properties in Limay, Bataan,
Bauan, Batangas, and Mabini, Batangas, the government official said.
“That is part of the discussion
that’s why PNOC is part of the negotiations,” Cusi said.
Last month, PNOC signed a memorandum
of understanding with Lloyds Energy to “explore cooperative ways for the
development of LNG facilities and natural gas generation plants and other
related activities.”
Apart from negotiations with PNOC,
Lloyds Energy is also working on its application for permits with the
Department of Energy.
“They’re working on their papers.
They’re going to submit it to us,” Cusi said.
“Lloyds Energy is set to submit
their masterplan and their timeline and then the schedule of work so we can
issue permits if they will meet the terms and conditions,” he added.
The Energy chief said Lloyds
Energy’s proposal for an LNG merchant power plant is a product of negotiations
when government officials went to Japan during the trip of the President last
May.
In previous visits of President
Duterte to Japan, Cusi invited Japanese investors to put up merchant power
plants in the.
A merchant plant has no bilateral
contracts and sells its output to the wholesale electricity spot market (WESM).
“The government is…encouraging
or inviting investment to address the energy requirement of the country in the
immediate future,” Cusi said.
Earlier, PNOC president and CEO
Reuben Lista said the team-up with Lloyds Energy will not affect its
prospective partnership with Phoenix Petroleum Philippines Inc. and China
National Offshore Oil Corp. (CNOOC) since both are still exploratory.
Last March, PNOC signed a separate
MOU with Phoenix Petroleum and CNOOC Gas and Power Group Co. Ltd. to explore
and discuss business opportunities and cooperation in relation to the equity
investment in Tanglawan Philippine LNG Inc.
The MOU will also allow PNOC to
provide a strategic alliance in further developing the Tanglawan LNG project,
with the government-run corporation’s involvement in the areas of pipeline
infrastructure and franchise, banked gas, equity, and other marketing
opportunities.
Tanglawan Philippine LNG was granted
a notice to proceed (NTP) by the Department of Energy (DOE) in December last
year to build the LNG hub project with a capacity of 2.2 metric tons per annum (mtpa),
which is targeted to start commercial operations by 2023.
Tanglawan is now seeking an
extension for its NTP after it expired last June 22.
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