LLOYDS Energy Group of Dubai has expressed interest to submit soon a solicited proposal to the Philippine National Oil Co. (PNOC) for a partnership to build a liquefied natural gas (LNG) hub in the country.
“Officials of Lloyds Energy, including Chief Operating Officer David Howe and Executive Director Brett Wight, recently met with PNOC President Reuben Lista, to express Lloyds Energy’s interest to pursue several major projects with the PNOC to enhance and strengthen their relations through the establishment of joint venture agreements and maximize the potential of their expertise and capabilities to develop the LNG industry in the Philippines,” the company said in a statement on Monday.
Lloyds Energy said it would join the solicited process recently announced by PNOC in choosing a partner for its planned LNG project.
PNOC earlier said that under the solicited scheme, it would open the tender to foreign and local firms, starting with the prequalification tender schedule within the month, with the selection streamlined to ensure the project will reach commercial operation before the end of the service contract for the Malampaya gas consortium in 2024.
Lloyds Energy, together with China Kaicheng Energy Ltd., has a proposal for the development and construction of an integrated LNG hub with storage, liquefaction, regasification and distribution facility, as well as a power plant capacity of 80 megawatts to 200 MW.
Aside from the LNG Project, Lloyds Energy will also pursue other projects with the PNOC particularly in the development of LNG facilities, oil reserves and the training of Filipino manpower for work in LNG industries in the Philippines and overseas. “We believe in the vision of the PNOC under the leadership of President Lista to invest not only in the development and construction of LNG facilities but also in the training of Filipino workers to improve their skills and abilities and contribute to the growth of the LNG industry in the Philippines,” Wight said.
When sought for comment, Lista said in a text message that there is no formal proposal yet submitted by Lloyds Energy since the Asian Development Bank and PNOC are still formulating the guidelines for the solicited scheme.
“Lloyds and the rest.… There are no official communications yet. There were just calls and visits. I understand Lloyds submitted a formal one to the Department of Energy [DOE],” Lista said.
The DOE is the agency that will issue permits for LNG, Lista said. Separately, under the DOE’s Philippine Downstream Natural Gas Regulation policy, at least 15 firms have expressed interest to develop their respective LNG facilities in the country.
The key features of the LNG project under the PNOC’s solicited scheme are the following:
- Minimum capacity of three metric tons per annum, equivalent to 3,000 MW to cover existing immediate needs with future increase to five MPTA.
- Phased development to cope with future market developments.
- Flexibility to allow Floating Storage and Regasification Unit in the first phase, but eventually, the terminal will be land-based as demand increase and to ensure greater security.
- Implemented as a joint-venture with PNOC to ensure public oversight of the project development and operation.
- PNOC would make site available in the Batangas area.
The LNG project is estimated to reach anywhere from $600 million to $1.4 billion.
Barring unforeseen circumstances, the tender process will be accomplished in six months, with start of construction to take immediately thereafter.
The PNOC said the solicited scheme will ensure the widest possible competition and achieve the lowest price for the country. It will also ensure that the construction is on time, on the right specifications and at the right price for the country.