MRC Allied sets foray into LNG
As published on BusinessWorldOnline
MRC ALLIED, Inc. is ramping up its diversification into the energy sector as it plans to venture into the liquified natural gas (LNG) business in 2018.
“Next year we want to go into LNG,” MRC President and Chief Executive Officer Gladys N. Nalda told reporters last Thursday, adding the company has the infrastructure and foreign partners to accomplish the venture.
“May property kami sa Leyte and one in Cebu. Malapit ’yun pareho sa port, so meron kaminginfrastructure and all. So titingnan namin kung positive ang feasibility niya. We will look into it,” she said. The MRC Allied executive explained the company has received proposals from European and Middle Eastern companies who want to invest in LNG business in the country. These foreign partners would be in charge of supplying the imported gas, while MRC would provide the necessary infrastructure. Ms. Nalda, however, noted that have yet to finalize plans for the partnership. For now, MRC Allied is in advanced talks to purchase an operating renewable energy firm in the country. However, the official declined to give further details, but said the target is to announce the partnership by September. Initially a property developer, MRC started its shift to renewable energy in 2016, when it increased its authorized capital to P5 billion from P1.5 billion. During its annual shareholder meeting this year, the company announced its ambitious plan to put up at least 1000 megawatts of renewable energy by 2022. The company is pursuing its renewable energy projects through its subsidiary Menlo Renewable Energy Corp. and other affiliates. This year, the company putting up a greenfield solar plant project in Clark Green City, Pampanga in partnership with the Bases Conversion and Development Authority and Sunray Power, Inc. With a total investment of P5 billion, the plant is set to have a capacity of 100 megawatts (MW). MRC widened its net loss to P6.9 million in the second quarter of 2017, from the P3.9 million it posted in the same period a year ago. Shares in MRC were flat at 33.5 centavos at the close of the stock market last Friday.