PNOC partners with China firm for oil, gas projects
State-run Philippine National Oil Co. (PNOC) has partnered with another foreign company to invest in various oil and gas infrastructure projects in the country.
PNOC has signed a memorandum of understanding with China Petroleum Pipeline Engineering Co. (CPP).
Under the MOU, both parties intend to jointly pursue liquefied natural gas (LNG), refinery and oil depot projects all over the country.
“It’s an understanding that we intend to look for possible projects that are mutually beneficial to both companies,” PNOC president Reuben Lista said in a text message.
CPP is a unit of state-run China National Petroleum Corp. which specializes in pipeline engineering and construction.
Based on its website, CPP has built over 100,000 km of oil and gas pipelines, over 200 km of offshore pipelines, 32 million cubic meters of oil storage tanks, 26 million cubic meters of underground oil storage, 50 refining facilities, 22.5 million tons of LNG terminals and over 100 oilfield processing plants and telecommunication and electricity facilities.
PNOC has been teaming up with several foreign firms.
Earlier this month, PNOC signed an MOU with Israel-based Ratio Petroleum Ltd. to pursue possible joint oil and gas exploration projects in the country.
The MOU seeks to establish cooperation between the two parties to conduct research and feasibility studies; the exchange of technical information, including coordination to facilitate necessary permits and clearances; and the sharing of technical resources and capabilities for project development.
In June, PNOC signed another MOU with Dubai-based Lloyds Energy to explore cooperative ways for the development of LNG facilities and natural gas generation plants and other related activities in government properties in Limay, Bataan, Bauan, Batangas, and Mabini, Batangas. It also explores the viability of oil importation and storage.
Energy Secretary Alfonso Cusi earlier said Lloyds Energy and Japan’s Mitsubishi Group plan to put up a 1,200-megawatt (MW) LNG merchant power plant in the country. A merchant plant has no bilateral contracts and sells its output to the wholesale electricity spot market (WESM).
In that project, PNOC is looking to take in a stake significant enough to secure board representation in the power plant.
PNOC has also signed a separate MOU with Phoenix Petroleum Philippines Inc. and CNOOC Gas and Power Group Co. Ltd. to explore and discuss business opportunities and cooperation in relation to the equity investment in Tanglawan Philippine LNG Inc.
The MOU will also allow PNOC to provide a strategic alliance in further developing the Tanglawan LNG project, with the government-run corporation’s involvement in the areas of pipeline infrastructure and franchise, banked gas, equity, and other marketing opportunities.
Read more at https://www.philstar.com/business/2019/07/29/1938678/pnoc-partners-china-firm-oil-gas-projects#cEtH8QLAX6FW7jxo.99