Nasdaq-listed New Fortress Energy has signed a memorandum of understanding with the Philippine National Oil Company (PNOC) to advance the development of infrastructure to supply reliable, cost-competitive power and natural gas into the Philippine market.
Under the agreement, PNOC and NFE will work together to identify potential opportunities to accelerate the development of important LNG and power infrastructure in the Philippines, leveraging future investments to build a new and durable LNG value chain in the country.
The MOU was signed on October 14 in a virtual ceremony that featured PNOC president and CEO Reuben Lista and New Fortress chairman and CEO Wes Edens. Energy Secretary Alfonso Cusi, who is also the ex-officio chairman of PNOC, was also present to extend the Department of Energy’s support. NFE funds, builds and operates natural gas infrastructure and logistics to deliver fully integrated projects.
State-run PNOC was already in the process of competitive selection for a partner for a 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. The decision was intended to demonstrate the government’s policy to encourage private capital investment in LNG infrastructure.
The MOU is non-binding on the parties, and actual terms of any future definitive agreement may differ from the terms of the MOU.
“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,” Lista says. “NFE can help us bridge the gaps in the value chain for a robust LNG industry and enable us to take that giant leap towards the realization of the Philippines’ potential as a strategic LNG hub for the Asia-Pacific region.”
Comments NFE's Edens: “The memorandum 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.”