MRC Allied partners with China firm for LNG projects

As published on BusinessWorld

MRC Allied, Inc. said it had signed a memorandum of understanding (MoU) with a Chinese company to explore the possibility of venturing into liquefied natural gas (LNG) in the Philippines, it told the stock exchange on Friday.

Gladys N. Nalda, MRC Allied president and chief executive officer, said the potential partnership with China Energy Engineering Corp. Ltd. (CEEC) is in line with the company’s thrust to diversify into the clean and renewable energy portfolio.

“Management plans to create a subsidiary that will focus on the development, construction and operation of all its LNG projects,” she said in a statement.

MRC Allied described CEEC as “a foreign company based in Beijing, China which is engaged in the business of exploration, development and construction of energy projects.”

The company said the purpose of the MoU, which was signed on Thursday, “is to confirm that both parties have an interest in exploring the possibility of investing, constructing, developing and operating [LNG] projects in the Philippines.”

Ms. Nalda said the MoU with the Chinese company is also part of MRC Allied’s “aggressive effort” to develop at least 1,000 megawatts (MW) of clean and renewable power in the next five years.

She previously said for this year, MRC Allied has 160 MW of solar capacity in the pipeline — 100 MW in Clark Green City, Pampanga and 60 MW in Naga City, Cebu.

Last month, the company bought a 15% stake in a company that partly owns a 50-MW solar project in Brgy. Castilla in Palo, Leyte province.

Before venturing into renewable energy, MRC Allied was primarily a property firm engaged in developing master-planned, integrated residential, commercial, recreational, tourism and industrial areas within a single community or township.

On Friday, shares in the company rose by 3.03% to P0.34 each.