MRC Allied finalizing details of LNG projects with Chinese firms

MRC Allied Inc. on Thursday said it is now finalizing details of possible liquefied natural gas projects (LNG) with two Chinese companies.

In a regulatory filing submitted by compliance officer Helen Chico, MRC Allied said the Chinese companies are China Energy Engineering Corp. Ltd. (CEEC) and China Engineering Group Guangdong Power Engineering Co. LTD. (GPEC).

In November 2017, MRC Allied entered into a memorandum of understanding (MOU) with CEEC and GPEC on exploring the possibilities of “investing, constructing, developing, and operating liquefied natural gas (LNG) projects in the Philippines.”

The one-year MOU covers “project evaluation and due diligence activities to determine the feasibility of pursuing an LNG project, among others,” it said.

“Considering that the said one year period has recently lapsed, the technical team of MRC is now finalizing its report on the matter including project analysis, evaluation, and recommendation on the project,” it added.

The final report will be presented to the MRC board for guidance on what further action to take.

State-owned China National Offshore Oil Corp. (CNOOC) and Philippine partner Phoenix Petroleum Inc., led by Davao-based businessman Dennis Uy, are also planning to build an LNG facility in the country.

The Department of Energy is pushing for an LNG terminal facility to prevent spikes in electricity rates once the reserves of Malampaya natural gas facility dries out some 10 years from now. 

Malampaya supplies the LNG requirements of three power plants with a combined generating capacity of 2,700 megawatts in Luzon—enough to meet up to 30 percent  of Luzon’s electricity needs, or about 20 percent of the country’s total electricity requirements, according to Shell Philippines Exploration B.V. (Spex)

Spex is a member of the Malampaya consortium and the operator of the gas facility in offshore northwest Palawan.

Primarily a property developer, MRC Allied’s principal assets include a 160 hectare industrial estate in Naga City in Cebu province and a 700 hectare land in San Isidro, Leyte. —Ted Cordero/VDS, GMA News