Chinese construction firm holds due diligence on planned LNG project in PH
As published on BusinessInquirer
A subsidiary of Chinese construction giant China Energy Engineering Corp. Ltd. has started a yearlong due diligence that would lead to a decision on whether it would pursue a liquefied natural gas (LNG) project with MRC Allied Inc.
MRC said in a disclosure to the Philippine Stock Exchange that it had signed a memorandum of understanding (MOU) with China Energy Engineering Group Guangdong Power Engineering Co. LTD. (GPEC).
This follows last week’s announcement that MRC had signed with GPEC parent firm China Energy Engineering Corp. Ltd. (CEEC) an MOU on possible LNG projects in the Philippines.
The newer MOU mentions that GPEC will conduct due diligence that will allow it later to make a decision to pursue such projects with MRC.
Based in Guangzhou City in Guangdong, GPEC is into exploration, development and construction of energy projects.
Last week, MRC president and chief executive Gladys Nalda said the potential partnership with [CEEC] was in line with the current thrust of management to diversify into the clean and renewable energy portfolio.
Nalda said the partnership was also part of MRC’s aggressive effort to develop at least 1,000 megawatts of clean and renewable power in the next five years.
She said MRC management was planning to create a subsidiary that would focus on the development, construction and operation of all its LNG projects.
MRC has so far a total of 160 MW of generating capacity through solar power projects in the pipeline.
“There is a growing interest and increasing excitement about prospects in the LNG industry in this country” MRC chair Carlos Jose Gatmaitan 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,” Gatmaitan said. “We heard that the Department of Energy will release the rules very soon.”