PNOC starts search for LNG hub joint venture partner

Philippine National Oil Co. has launched a tendering process in its quest to find a joint venture partner to build the planned liquefied natural gas (LNG) terminal.

The state-run oil firm has published an invitation to apply for eligibility and submit a proposal for the PNOC Batangas LNG hub project.

“PNOC is inviting interested bidders to participate in the selection of PNOC’s joint venture partner to design, build, finance, operate and maintain the Batangas liquefied natural gas hub in Batangas Bay, Philippines,” the oil company said.

PNOC has applied with the Department of Energy (DOE) for the project to be classified as an “energy project of national significance” in accordance with Executive Order (EO) 30.

Signed by President Duterte in June 2017, EO 30 provides that government agencies concerned with energy projects should presume other agencies were able to act upon and issue their respective permits within a 30-day period.

These projects are deemed approved if not acted upon five days after the lapse of 30 days.

In its tender process, PNOC said interested parties are required to purchase the instructions to private sector participants - eligibility documents, forms and annexures as well as submit a letter of interest (LOI) to the PNOC.

The LOI will include the name of the potential bidder, name of the authorized representative of such bidder and contact details of the authorized representative.

Prospective partners are also required to provide a manager’s check of P1 million.

PNOC has set a pre-eligibility conference on Nov. 16, while submission of complete eligibility documents is due on or before Dec. 21.

“The PNOC reserves the right to accept or reject all or any submissions without assigning any reason whatsoever. The PNOC also reserves the right to waive any minor defects in the eligibility document submissions of any bidder,” it said.

“At any time, the PNOC reserves the right to not proceed with the competitive selection process and the execution of the joint venture agreement and other relevant concession, documentation without prior notice or liability and without any obligation give any reason not to proceed,” the state-run firm said.

The Department of Energy (DOE) is looking to start constructing the country’s LNG hub by mid-2019 to safeguard against the anticipated contract expiration of the Malampaya gas facility by 2024.

The facility is also targeted to become an LNG hub for Asia, complementing those in Japan and Singapore.