Philippines short-lists companies for $2 bln LNG project

Philippines short-lists companies for $2 bln LNG projectImage courtesy of Shell

The Philippines has set up a short list of companies fit to build and operate the country’s first LNG import terminal valued at $2 billion. 

Speaking to Reuters the country’s energy secretary Alfonso Cusi said the winner of the contract could be nominated in November.

Out of 18 proposals submitted the groups that have been picked include the state-owned Philippines National Oil Company (PNOC), Tokyo Gas and First Gen Corporation partnership as well as China National Offshore Oil Corp.

PNOC and CNOOC are both looking for partners for the project, the minister said.

However, First Gen, the Philippine gas-fired power plants operator, told Reuters that no talks regarding a joint venture with Tokyo Gas were held, although the company is looking to take on a partner for the project.

PNOC has issued a call for project partners with interested parties having until December 21 to submit their eligibility documents.

China’s CNOOC has an MoU in place with Phoenix Petroleum of the Philippines, however, the oil and gas exploration firm PXP Energy Corp could be in the running the acquire a 49 percent of Phoenix stake in the planned joint venture.

The country is aiming to build the import terminal in the Batangas province and have it up and running before the Malampaya gas field reserves are set to deplete in 2024.

Besides import facilities, Cusi stressed that cargoes to China are already being transferred to smaller vessels via-ship-to-ship transfer off the Philippines. He added that the terminal could develop into a regional LNG trading hub.

Earlier this year, Cusi said the project construction should start before the end of the year, with the operations on the 5 mtpa project to begin in 2020-2021.

Liquefied natural gas delivered to the proposed facility would be used to fuel power plants with a total production capacity of 3,211 MW that are supplied from the Malampaya gas field currently.

 

LNG World News Staff

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