PNOC shortlists 3 bidders for LNG project

State-run Philippine National Oil Co. (PNOC) is evaluating three possible partnerships to pursue the development of a $2-billion liquefied natural gas (LNG) terminal.

PNOC president Ruben Lista said the company is considering three prospective investors to go through a vetting process to be determined by the company’s board.

The PNOC board is currently finalizing the criteria required in choosing a partner for the LNG project, Lista said.

The criteria was previously endorsed by PNOC’s technical working group (TWG) and consultant Asian Development Bank (ADB).

“After this we will head to Stage 2, which means we will determine whether the proponents will satisfy what is needed by the country,” Lista said.

If none of the prospective partners pass the criteria, PNOC will resort to teaming up with other interested parties that submitted letters of intent (LOI) to the Department of Energy (DOE).

“If not, we will join whoever is offering their service to the DOE and decide on a system on how we can work together,” Lista said.

PNOC was tasked by Energy Secretary Alfonso Cusi to put up an integrated LNG hub with storage, liquefaction, regassification and distribution facility, as well as a reserve initial power plant capacity of 200 MW.

But the DOE has also issued the Philippine Downstream Natural Gas Regulation (PDNGR), which details the rules and regulations governing the downstream natural gas industry to develop a market and gain energy security and sustainability.

So far, the DOE has received at least nine LOIs from seven companies, which include PNOC, Japanese firm Tokyo Gas, Lopez-led First Gen Corp. and China National Offshore Oil Co. (CNOOC).

Lista said the participation of government in the development of the country’s LNG hub through PNOC was important because it is a holder of a franchise for the LNG pipeline.

LNG terminals in peer countries like Singapore and Malaysia are also operated by state-owned corporations which assure a cheaper option for LNG, the PNOC official said.