MRC Allied, China firm partner for LNG project

Listed MRC Allied Inc. has partnered with a Chinese firm to look into possible investments in the Philippine liquefied natural gas (LNG) industry.

In a disclosure to the Philippine Stock Exchange, MRC Allied said it signed a memorandum of understanding (MOU) with China Energy Engineering Group Guangdong Power Engineering Co., LTD. (GPEC), a company based in Guangzhou, engaged in the business of exploration, development and construction of energy projects.

Under the agreement, MRC and GPEC will explore the possibility of investing, constructing, developing and operating LNG projects in the Philippines.

Upon signing, GPEC will conduct due diligence for one year to make a decision to pursue LNG projects with MRC.

“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,” MRC chairman Carlos Jose Gatmaitan said.

“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 and GPEC have executed a MOU to look at the potential of developing renewable energy projects.

Originally a listed real estate company with a diverse portfolio in property and mining, MRC Allied announced in May that it is shifting its focus to pursue clean power investments under its new leadership.

The company has outlined a 1,000MW capacity target by 2022 from clean energy developments.

MRC has previously executed MOUs with different firms, such as Uni Solar Inc. and XRC Mall Developer Inc., to look into the development of solar rooftop projects; and Merge Energy and Environment Corp. (MEEC) for various renewable energy and other clean power developments.

It has also acquired a 15 percent stake in Sulu Electric Power and Light Philippines Inc. (Sepalco) in line with its “buy and build” strategy to become a major renewable energy player in the country.

Sepalco has a 50-MW solar farm in Palo, Leyte and has room to expand its capacity to 100 MW.