PNOC inks LNG, power infra deal with US firm

State- run Philippine National Oil Co. ( PNOC) has signed a memorandum of understanding( MOU) with US- based New Fortress Energy LLC (NFE) to advance the development of the power and liquefied natural gas ( LNG) infrastructure in the country.

Under the MOU, PNOC and NFE will work together to identify potential opportunities to accelerate the development of LNG and power infrastructure in the country, which may encourage future investments to build a new and durable LNG value chain in the Philippines that are capable of generating jobs, revenue and opportunity far beyond prospective terminal or power plant sites.

The MOU was signed on Oct. 14 by PNOC president and CEO Reuben Lista and NFE chairman and CEO Wes Edens in a virtual ceremony.

Energy Secretary Alfonso Cusi, who is also the ex-officio chairman of PNOC, also joined the virtual gathering to witness the signing ceremony and show Department of Energy (DOE)’s support to the joint undertaking.

“We welcome this recent development in light of our intensified efforts to ensure the country’s energy security with the expected depletion of Malampaya, and as part of our initial steps towards attaining our vision of establishing the Philippines as a regional LNG hub in Southeast Asia,”Cusi said.

“We hope that this partnership would bear fruit that would redound to the advantage of our people,” he said.

PNOC was already in the process of competitive selection for a partner for the LNG

Terminal Project when it was shelved in December 2018, due to increased private sector interest to undertake the entire project on their own.

“We are confident that, with this cooperation with New Fortress Energy, PNOC will find meaningful ways to contribute to achieving energy security and stability in the country,” Lista said.

“NFE can help us bridge the gaps in the value chain for a robust LNG industry and enable us to take that giant leap towards the realization of the Philippines’ potential as a strategic LNG hub for the Asia-Pacific region,” he said.

For its part, Edens said the MOU would enable cleaner, more affordable and more reliable energy for the people of the Philippines.

“Increasing access to power across the islands at a rapid pace will create significant growth opportunities. We look forward to working closely with our partners at PNOC and the government to bring more reliable power and help accelerate the clean energy transition,”

New Fortress Energy is a US-based global energy infrastructure company founded in 2014 and is listed on Nasdaq. It specializes in the construction and operation of LNG import terminals and other related facilities on natural gas utilization.

PNOC said the MOU is non- binding on the parties, and actual terms of any future definitive agreement may differ from the terms of the MOU.