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Lloyds Energy declares interest in PNOC LNG tie-up

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LNG tanker
REUTERS

LLOYDS ENERGY GROUP LLC said it submitted a letter of interest to the Philippine National Oil Co. (PNOC) to join the selection process for PNOC’s joint venture partner to develop an liquefied natural gas (LNG) hub in Batangas Bay.

As required by PNOC, the Dubai-based firm said it had also bought eligibility documents containing instructions to private sector participants while confirming its attendance for the pre-eligibility conference scheduled on Nov. 16, 2018.

PNOC President and Chief Executive Officer Reuben S. Lista did not immediately respond to a request for confirmation of Lloyds Energy’s statement as well as questions on other companies signifying their intention to participate in the selection.

Lloyds Energy said it has a proposal together with together with China Kaicheng Energy Ltd. to develop and build an integrated LNG hub.

It becomes the first entity to come forward with firm plans after PNOC, the DoE’s corporate arm, last month formally invited interested bidders to be its joint venture partner that will design, build, finance, operate and maintain the LNG hub.

The Department of Energy (DoE) earlier said that PNOC is one of three groups that were shortlisted to build the LNG import terminal.

Lloyds Energy previously expressed interest in pursuing several projects with PNOC.

Aside from the LNG project, Lloyds Energy said it plans to pursue the development of oil reserves and the training of Filipino manpower for work in LNG industries in the Philippines and overseas.

PNOC, along with its chosen joint venture partner, will be competing with the two other interested proponents: the consortium between Phoenix Petroleum Philippines, Inc. and China National Offshore Oil Corp. (CNOOC); and Lopez-led First Gen Corp., which owns several gas-fired power plants.

The need for an integrated LNG terminal comes as the country’s lone source of natural gas — the Malampaya gas-to-power project — nears depletion. The contract for the project off the Palawan cost will end in 2024.

PNOC wants its LNG hub project to be classified as an energy project of national significance under Executive Order 30, the law that grants an easier regulatory permitting process.

The company required interested private sector participants to secure eligibility documents, which were made available for viewing at the PNOC’s website. It said in order to participate in the selection process, the interested joint venture partner must submit a letter of interest to the company along with the payment of P1 million.

Deadline of submission of eligibility documents is at noon of Dec. 21, 2018. A pre-bid conference open to the public, will be held at 10:00 a.m. on Nov. 16, 2018.

PNOC said that at any time, it reserves the right to not proceed with the competitive selection process and the execution of the joint venture agreement plus other relevant concession documentation “without prior notice or liability and without any obligation to give any reason not to proceed.” — Victor V. Saulon