The Philippine National Oil Co. (PNOC) has signed a memorandum of understanding (MOU) with Nasdaq-listed New Fortress Energy LLC (NFE) to identify potential opportunities in the development of liquefied natural gas (LNG) and power infrastructure in the Philippines.
The state firm was already in the competitive selection process for a partner for an LNG terminal project—early on considered as the only such project in the Philippines—when it was shelved in December 2018 considering the increased private sector interest in undertaking similar projects on their own.
Under the nonbinding MOU, PNOC and NFE will leverage future investments to build “a new and durable LNG value chain in the Philippines capable of generating jobs, revenue and opportunity far beyond prospective terminal or power plant sites.”
Energy Secretary Alfonso G. Cusi, also the ex-officio PNOC chair, said in a statement that the signing of the MOU was a welcome development in light of the intensified efforts to ensure the country’s energy security.
“[W]ith the expected depletion of Malampaya (gas field), and as part of our initial steps toward 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.”
PNOC president and chief executive Reuben S. Lista said their American partner, NFE, could help bridge the gaps in the value chain for a robust LNG industry
“[NFE can] enable us to take that giant leap toward the realization of the Philippines’ potential as a strategic LNG hub for the Asia-Pacific region,” Lista said.