The Philippine National Oil Company (PNOC) has signed a Memorandum of Understanding (MOU) with New York-based New Fortress Energy LLC (NFE) to develop infrastructure to supply reliable, cost-competitive power and natural gas into the local market.
NFE was founded and is headed by Wes Edens, a co-owner of the Milwaukee Bucks team in the National Basketball Association (NBA).
Under the MOU, PNOC and NFE will work together to identify potential opportunities to accelerate the development of important liquefied natural gas (LNG) and power infrastructure in the Philippines.
The MOU was signed in a virtual ceremony with PNOC President and CEO Reuben Lista, Cusi, and Edens present.
“We welcome this recent development in light of the 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,” said Cusi, who also chairs PNOC.
The state-run oil firm was already in the process of competitive selection for a partner for the LNG Terminal Project when it was shelved in December 2018 with a growing interest coming from the private sector to undertake such projects on its own.
“NFE can help us bridge the gaps in the value chain for a robust LNG industry and enable us 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 today 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.”
Photo from Bloomberg website
