PNOC inks accord with US’s New Fortress Energy for LNG infra advancement in Philippines

State-owned Philippine National Oil Company (PNOC) said Thursday it has signed a memorandum of understanding (MOU) with US-based New Fortress Energy LLC for a joint advancement of liquefied natural gas (LNG) infrastructure in the country.

In a statement, PNOC said the state-run firm and the US energy company will jointly advance “the development of infrastructure to supply reliable, cost-competitive power and natural gas into the Philippine market.”

The MOU was signed on October 14, in a virtual ceremony between PNOC president and CEO Admiral Reuben Lista (Ret) and New Fortress chairman and CEO Wes Edens.

Under the joint undertaking, PNOC and New Fortress will work together to identify potential opportunities to accelerate the development of important LNG and power infrastructure in the country, “leveraging 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.”

While the MOU is non-binding on the parties, the PNOC said actual terms of any future definitive agreement may differ from the terms of the accord.

Energy Secretary Alfonso Cusi, who is also the ex-officio Chairman of the Board of PNOC, lauded the signing of the MOU saying the venture will certainly benefit the country and the Filipino people.

"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.

The PNOC said it was already in the process of competitive selection for a partner for the LNG Terminal Project when it was shelved in December 2018 in light of increased private sector interest to undertake, on its own, the entire project.

“We are confident that, with this cooperation with New Fortress Energy, PNOC will find meaningful ways to contribute to achieving energy security and stability in the country,” Lista said.

“New Fortress Energy can help us bridge the gaps in the value chain for a robust LNG industry and enable us to take that giant leap towards the realization of the Philippines’ potential as a strategic LNG hub for the Asia-Pacific region,” Lista said.

For his part, Edens said the memorandum signed between PNOC and New Fortress will enable cleaner, more affordable and more reliable energy for the people of the Philippines.

“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 said.

New Fortress Energy is a NASDAQ-listed, US-based global energy infrastructure company, founded in 2014, that specializes in the construction and operation of LNG import terminals and other related facilities on natural gas utilization.

Its founder and CEO, Wes Edens, is also co-owner of NBA team Milwaukee Bucks.—AOL, GMA News