The Philippine National Oil Co. (PNOC) is looking to tap the Asian Development Bank (ADB) to be its consultant for the planned $2-billion liquefied natural gas (LNG) terminal.
PNOC is in talks with ADB to provide technical consultancy in pushing for the country’s LNG hub, as recommended by the agency’s technical working group (TWG).
“We are negotiating with ADB. They are going to present a proposal this week. The TWG coordinated with them. It is the TWG that recommended ADB,” PNOC president Reuben Lista said.
Earlier, PNOC had talks with the International Finance Corp (IFC) for the development of comprehensive terms of reference (TOR) for a detailed feasibility study on the use of banked gas and its assistance in forging the most appropriate business arrangement for the LNG terminal project.
But talks between the two companies fell through.
The PNOC currently has three unsolicited proposals on its table. These are from the Korea Electric Power Corp. (KEPCO), Lloyds Energy Group and China National Offshore Oil Co. (CNOOC).
The three proposals are being assessed by the TWG and will be evaluated by the consultant, which could be ADB if talks materialize, Lista said.
“If its ADB, ADB will check the offer. Is it really attainable? Will we really make money?” he said.
Should none of the offers will qualify the TWG’s and consultant’s evaluation, PNOC will bid out the LNG terminal.
“If none of the offers will pass according to our evaluation and evaluation of our consultant, then the consultant will then make a term of reference for a solicited proposal,” Lista said.
