7 companies submit bids to build $2-b LNG facility
State-owned Philippine National Oil Co. said it received seven unsolicited proposals from the private sector to develop the country’s first integrated liquefied natural gas facility estimated to cost $2 billion.
The unsolicited proposals, submitted to PNOC’s technical working group, include the offers of Korea Electric Power Co., Lloyds Energy Group, China National Offshore Oil Corp., Energy World Corp., PT. Jaya Samudra Karunia and PT PGN LNG Indonesia/PT Bosowa Corporindo with local partner MOF Corp.
The seven proposals beat the deadline set by PNOC for submission, which was originally set for Dec. 31 but was later moved to Jan 3.
“Kepco’s [proposal] was returned because it did not comply with the requirements of an unsolicited proposal and they did not resubmit. Lloyds Energy’s first proposal was also returned but they resubmitted ahead of the other proponents and their proposal is the one being currently evaluated,” PNOC spokesman Ryan Tanjuatco said.
Tanjuatco said PNOC, together with its consultant, would evaluate all the proposals.
PNOC said a decision would be issued soon, as Energy Secretary Alfonso Cusi announced that he wanted the groundbreaking of the LNG facility this year.
Cusi said he wanted the Philippines to become a trading hub of LNG once the terminal was completed.
PNOC intends to complete the integrated LNG terminal by 2020 or 2021, in time for the anticipated depletion of the Malampaya gas project in northwest Palawan by 2024. The Malampaya consortium said, however, natural gas from the Malampaya field could now last until 2027.
Lloyds is a Dubai-based company specializing in LNG development while CNOOC is one of China’s biggest energy firms. CNOOC initially submitted its offer to the Energy Department but later on revised it for submission to PNOC.
CNOOC also has a pending application with the government to team up with state-run PNOC Exploration Corp. in service contract 57 off Northwest Palawan.
Energy World is presently constructing its own 650-megawatt natural gas power plant in Pagbilao, Quezon.
First Gen also bared plans to invest in an LNG terminal as the company owns natural gas power plants in Batangas which can serve as anchor load.
PT Jaya Samudra Karunia, meanwhile, evolved from a shipping firm to become an LNG solutions provider.