The Philippine National Oil Company (PNOC) has signed a Memorandum of Understanding (MOU) agreement with BERGS Energy Solutions and Technology Corporation (BESTC) to examine the potential development of a large-scale natural gas-fired power project with up to 1,800 megawatts (MW) in capacity.

On a post on its official Facebook page, PNOC said that the agreement covers the exploratory development of a 3 x 600 MW Natural Gas-Fired Combined Cycle Power Project (CCPP) as well as a Floating Storage Regasification Unit (FSRU) at the PNOC’s Industrial Park. The MOU was signed on February 10. 

The project, if pursued and according to the post, aims to help provide lower electricity prices, meet ever-growing energy demands, and support the government’s efforts in transitioning to cleaner energy sources.

Representing PNOC in the signing were President and CEO Ma. Cristina Sheila C. Cabaraban and Senior Vice President for Energy Business Atty. Graciela M. Barleta. Meanwhile, BESTC was represented by its President Bernardo P. Babaran and Mr. Antonio Rivera.

A combined cycle power plant uses two turbines, one powered by gas and the other by steam, to generate electricity at a more efficient rate than single-cycle plants. An FSRU, on the other hand, is a floating facility designed to receive imported liquefied natural gas (LNG), store it, and convert it back into gas for use later on.

At 3 x 600 MW, the proposed facility would have a total potential capacity of 1,800 MW, placing it amongst the largest gas-fired developments in the country if it moves beyond the exploratory stage.

PNOC is a state-owned energy company mandated to develop and manage the country’s energy resources. In recent years, it has expanded its involvement in projects related to natural gas and energy transition initiatives.

BESTC provides both technical and non-technical services in the power generation sector. It provides its services to projects from inception to completion and ensures ongoing operation and maintenance within these initiatives.

As an MOU, the agreement signals an intent to explore the potential collaboration rather than a final investment decision. No other significant information, such as timeline, regulatory filings, or endorsements, have been announced as of yet.

Do you think that this exploratory partnership will progress toward formal registration and development, or remain at the study stage?

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Photo Credit: PNOC Facebook Page