MRC ALLIED, Inc. on Thursday said it has placed plans for a liquefied natural gas (LNG) facility on hold, while it awaits the government’s rules governing such projects.
In a disclosure to the stock exchange, MRC Allied said it will focus on completing its current solar power projects.
“(It) has been recommended by the technical team of MRC that the LNG projects of the company be put on hold considering that the Department of Energy (DOE) is finalizing its guidelines and Implementing Rules and Regulations (IRR) governing Liquefied Natural Gas (LNG) projects,” MRC Allied said.
In November 2017, MRC Allied signed a memorandum of understanding (MoU) with China Energy Engineering Corp. Ltd. (CEEC) “to confirm that both parties have an interest in exploring the possibility of investing, constructing, developing and operating [LNG] projects in the Philippines.”
It described CEEC as a foreign company based in Beijing, China, which is engaged in the business of exploration, development and construction of energy projects.
Also in the same month, MRC Allied signed a separate MoU with Guangdong Power Engineering Co., Ltd. (GPEC) to explore LNG projects in the country.
The MoUs were renewed by the parties, after the one-year validity period of the original deals had lapsed.
MRC Allied trimmed its net loss to P7.83 million as of end-March 2019, from P10.10-million loss during the same period a year ago.
“The increase was largely due to the related party transaction with Menlo Capital Corp. to support the general and administrative expenses of the company and the accrual of interest on the bank loans,” the company said.
MRC Allied, which diversified from property to energy development, plans to invest between P80 billion and P100 billion over a 10-year period to achieve its aspirational goal of putting up 10,000 MW of power capacity.