Dubai’s Lloyds Energy Group keen on PNOC tie-up on LNG project

By Lenie Lectura – November 9, 2018
from Business Mirror

LLOYDS Energy Group of Dubai has submitted a letter of interest to the Philippine National Oil Co. (PNOC) to partner with the state firm for the development of a liquefied natural gas (LNG) hub in Batangas Bay, Philippines.

In line with the requirements of the PNOC, Lloyds Energy also purchased the Instructions to Private Sector Participants-Eligibility Documents and confirmed their attendance to the Pre-Eligibility Conference set by the PNOC on November 16, 2018.

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 200 to 800 megawatts (MW).

The PNOC is one of the three companies shortlisted by the Department of Energy (DOE) to build and operate its first LNG import terminal. Lloyds Energy’s had earlier expressed interest in pursuing several major projects with the PNOC to strengthen their relations through joint venture agreements and maximize the potential of their expertise to develop the LNG industry in the Philippines.

Aside from the LNG Project, Lloyds Energy intends to 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.

On October 22 the PNOC released a formal bid invite to apply for eligibility and submit a proposal for the PNOC Batangas LNG hub project. The state firm is inviting interested bidders to participate in the selection of PNOC’s joint venture partner to design, build, finance, operate and maintain the Batangas LNG hub.

The PNOC has applied to the DOE for the LNG project to be classified as an “Energy Project of National Significance” under Executive Order 30.

PNOC President Reuben Lista earlier identified a number of foreign firms that expressed interest to participate.

“The group of Chevron, NYK, Jera accompanied by an American consul representing an American firm, called PNOC and expressed their interest. In Russia, two companies expressed interest with a possible third as supplier,” said Lista.

The LNG project cost is anywhere from $600 million to $1.4 billion.