PNOC signs deal with NFE (Daily Tribune)

Daily Tribune

By Maria Romero

 

 

State-run Philippine National Oil Company (PNOC) has tapped New Fortress Energy LLC (NFE) to help the government facilitate reliable supply, cost-competitive power, and natural gas into the Philippine market.

PNOC on Wednesday signed a memorandum of understanding with NFE to identify potential opportunities that will accelerate the development of important Liquefied Natural Gas (LNG) and power infrastructure in the country.

Under the agreement, the two companies will be banking on their future investments to build a new and durable LNG value chain in the country that is capable of generating jobs, revenue, and opportunity far beyond prospective terminal or power plant sites.

PNOC chief Admiral Reuben S. Lista pointed out that NFE can help them “bridge gaps” in the value chain for a robust LNG industry.

Meanwhile, Energy Secretary Alfonso G. Cusi, who is also the ex-officio Chairman of the Board of PNOC, said the tie-up would benefit the country amid the thinning resources at the Malampaya natural gas facility.

“We welcome this recent development in light of our intensified efforts to ensure the country’s energy security with the expected depletion of Malampaya, and as part of our initial steps towards attaining our vision of establishing the Philippines as a regional LNG hub in Southeast Asia,” Cusi said.

PNOC was already in the process of competitive selection for a partner for the LNG Terminal Project when it was shelved in December 2018 following increased private sector interest to undertake, on its own, the entire project.

It was intended to demonstrate the government’s policy to encourage private capital investment without prejudice to PNOC’s role to develop and establish a growing value chain for the LNG in the country.