TAGUIG CITY - Philippine National Oil Company (PNOC) announced today that it has signed a Memorandum of Understanding (MOU) with New Fortress Energy LLC (NASDAQ:NFE) to advance the development of infrastructure to supply reliable, cost-competitive power and natural gas into the Philippine market.
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 country, leveraging future investments to build a new and durable LNG value chain in the Philippines capable of generating jobs, revenue and opportunity far beyond prospective terminal or power plant sites.
Energy Secretary Alfonso G. Cusi, who is also the ex-officio Chairman of the Board of PNOC, hailed the signing of the MOU saying the venture will certainly benefit the country and the Filipino people.
The MOU was signed yesterday, October 14, in a virtual ceremony that featured PNOC President and CEO Admiral Reuben S. Lista (Ret) and New Fortress Chairman and CEO Wes Edens. Secretary Cusi also joined the virtual gathering to witness the signing ceremony and show DOE’s support to the joint undertaking.
"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. We hope that this partnership would bear fruit that would redound to the advantage of our people," Secretary Cusi said.
State-run PNOC was already in the process of competitive selection for a partner for the LNG Terminal Project when it was shelved in December 2018 in light of increased private sector interest to undertake, on its own, the entire project. A move intended to demonstrate the government’s policy to encourage private capital investment without prejudice to PNOC’s assumed role as the catalyst to develop and establish a growing value chain for the LNG in the country.
“We are confident that, with this cooperation with New Fortress Energy, PNOC will find meaningful ways to contribute to achieving energy security and stability in the country,” Admiral Lista said. “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.”
For its 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.”
New Fortress Energy (NFE) is a NASDAQ-listed, US-based global energy infrastructure company, founded in 2014, that specializes in the construction and operation of LNG import terminals and other related facilities on natural gas utilization. NFE founder and CEO Wes Edens is also co-owner of NBA team Milwaukee Bucks. The love of the game of basketball, coincidentally shared by Mr. Edens with millions of Filipino fans, promises other areas for potential investment in the Philippines.
The MOU is non-binding on the parties, and actual terms of any future definitive agreement may differ from the terms of the MOU.
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