The government rejected all unsolicited offers for the proposed $2-billion integrated liquefied natural gas project after they were found non-compliant, Energy Undersecretary Donato Marcos said Thursday.
Marcos said with the latest development, state-run Philippine National Oil Co. was seeking solicited offers from the private sector to choose the partner for the development of the LNG integrated terminal, which would be crucial with the expected depletion of the Malampaya natural gas reserves by 2024.
Marcos said PNOC asked its board to approve the solicited mode of partnership selection instead of the previous unsolicited approach.
“PNOC is seeking for a partner. Their scheme is solicited, Previously it was unsolicited,” Marcos said.
Marcos said PNOC moved toward a solicited mode partnership “because there were no offerors who became compliant or comprehensive.”
“So now they asked the approval of the board to look for a partner through solicited terms,” he said.
Marcos said PNOC would establish its own terms of reference. After selecting a partner, PNOC will apply for a permit with the Energy Department, he said.
“Everything is DoE in terms of permitting and regulation,” he said.
PNOC last year tapped the Asian Development Bank for technical assistance for its LNG venture.
The ADB acted as transaction advisor for PNOC. ADB’s scope of services included the assessment of the viability of the unsolicited proposals.
The ADB will also assist in the drafting of the tender documents for the PNOC’s solicited offer and assist in the negotiation with the winning bidder.
PNOC previously received seven unsolicited offers from Lloyds Energy, Korea Electric Power Co., China National Offshore Oil Corp., Energy World Corp., First Gen Corp., PT. Jaya Samudra Karunia and PT PGN LNG Indonesia/PT Bosowa Corporindo with local partner MOF Corp.
Marcos said the Energy Department also received interests from Jera Co. Inc. of Japan, Chevron and NYK to participate in the emerging LNG industry.
“More are less there are 15 [interested parties] for LNG,” he said.
Energy Secretary Alfonso Cusi earlier said he wanted the Philippines to put up an LNG hub in preparation for the eventual depletion of the Malampaya natural gas reserves in northwest Palawan, which supplies fuel to power plants in Batangas with over 3,000 megawatts of capacity.