Power firm expands portfolio via tieups
As published on Malaya
Listed MRC Allied Inc. has executed a memorandum of understanding (MOU) with China Energy Engineering Group, Guangdong Power Engineering Co. LTD., which is engaged in the exploration, development and construction of energy projects.
MRC Allied said the MOU confirms that both parties have interest in investing, development, construction and operation of liquefied natural gas (LNG) projects in the Philippines. Within a period of one year, the parties will conduct discussions and due diligence to explore possible local power projects. “There is a growing interest and increasing excitement about prospects in the LNG industry in this country. We are looking forward to having solid partnerships with foreign investors,”Carlos Jose Gatmaitan, MRC Allied chairman, said in a statement. “We are likewise excitedly waiting for the government to come up with the legal and regulatory framework that will govern the LNG industry. We heard that the Department of Energy will release the rules very soon,”Gatmaitan added. The company said both parties are bound by the terms of the MOUand confidentiality while the deal is in force and within one year thereafter. Last month, MRC Allied also had discussions with XRC Mall Developer Inc. to set up solar panels in the latter’s malls around the country. XRC is a domestic corporation that establishes and operatesXentro Malls nationwide. These community malls, located in cities and municipalities around the Philippines, have leaders in the retail and food industry as major tenants. MRC Allied’s venture into solar PV rooftop follows its recent acquisition of 15 percent stake in the 50 MW Sulu Electric Power and Light Philippines Inc. (Sepalco) project in Leyte. The power plant lies on a 70-hectare property in Palo and has a total of 188 solar panels. It is connected to the existing 69 kilovolt transmission line of the National Grid Corporation of the Philippines in the province. The Sepalco project is on top of MRC Allied’s 100 MW solar project in Pampanga and 60 MW solar project in Cebu, both in the advance stages of pre-development. Earlier, MRC Allied said it plans to develop at least 1,000 MW of renewable energy over the next five years that would require investments of about P80 billion to P100 billion. Menlo Capital, an investment house which counts as its shareholders businessman Benjamin Bitanga and Lucio Tan Jr., owns 52 percent of the company while the remaining shares are owned by the public.