State-run Philippine National Oil Company (PNOC) and United States-based energy firm New Fortress Energy LLC signed a memorandum of understanding (MOU) to identify potential opportunities in advancing the development of liquefied natural gas (LNG) infrastructure in the country.
In a statement released by the Department of Energy (DOE) Thursday, PNOC president and chief executive officer Reuben Lista and New Fortress Energy chairman and chief executive officer Wes Edens signed Wednesday the MOU.
DOE Secretary Alfonso Cusi witnessed the virtual signing.
“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. We hope that this partnership would bear fruit that would redound to the advantage of our people,” Cusi said.
Since December 2018, PNOC has been in the process of competitive selection for a partner for the LNG terminal project as it aims to encourage the private sector to invest in LNG infrastructure and value chain in the country.
Lista said the US energy firm can help PNOC to bridge the gaps in the local LNG value chain and will help the country to achieve its vision to be a potential LNG hub in Southeast Asia.
Edens said the MOU signed will enable a cleaner, more affordable and reliable energy for Filipinos.
“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,” Edens added.
Last Tuesday, Cusi said the DOE has issued notices to proceed to four out of five companies that proposed to build LNG terminals in the country.
The DOE hastens moves to attract more investments in the LNG industry as the service contract of the Malampaya gas field will expire in 2024.
However, the DOE chief said reserves in Malampaya will go beyond 2024.
Source: Philiipines News Agency