MRC Allied taps Chinese partner for LNG venture
MRC Allied, Inc. has signed a memorandum of understanding (MoU) with Guangdong Power Engineering Co., Ltd. (GPEC) to explore projects in liquefied natural gas (LNG)project in the Philippines two months after pursuing a similar deal on renewable energy projects.
In a disclosure to the stock exchange, MRC Allied said the purpose of the MoU “is to confirm that both parties have interest in exploring the possibility of investing, constructing, developing and operating” local LNG projects. It said the memorandum was signed on Thursday.
“There is a growing interest and increasing excitement about prospects in the LNG industry in this country. We are looking forward to having solid partnerships with foreign investors” said MRC Chairman Carlos Jose P. Gatmaitan in a statement.
“We are likewise excitedly waiting for the government to come up with the legal and regulatory framework that will govern the LNG industry. We heard that the Department of Energy will release the rules very soon,” he said.
MRC Allied, a mining and property company that is bent on shifting to energy, described GPEC as based in Guangzhou, Guangdong, People’s Republic of China, which is engaged in the business of exploration, development and construction of energy projects.
In July, MRC Allied, Inc. entered into a separate MoU with the Chinese energy engineering group to look into the renewable energy projects in the Philippines that have been identified by the local company.
In the latest MoU, MRC Allied said within a period of one year, the parties will conduct due diligence to identify prospective LNG projects.
“Subject to the result of the due diligence, the parties will execute a more definitive agreement covering an identified LNG project,” the company said in its regulatory filing on Friday.
It also said the MoU is in effect for a period of one year from signing.
“The effect on the business, financial condition and operations of the Issuer will be subject to the definitive agreement to be executed by the parties after the conduct of due diligence within the one year period,” MRC Allied said.
On Friday, shares in MRC Allied rose by 11.69% to close at P0.43 each. — Victor V. Saulon
