Listed property developer MRC Allied Inc. has signed an agreement with a Chinese power company that’s interested in taking on liquefied natural gas (LNG) initiatives in the Philippines.
In a disclosure, MRC Allied said on Friday it signed a memorandum of understanding (MOU) with Guangdong Power Engineering Co. Ltd.(GPEC), a unit of the China Energy Engineering Group, to explore the likelihood of investing, constructing, developing and operating LNG facilities in the country.
GPEC will conduct due diligence for a year from the date of the MOU signing, enabling it to pursue LNG projects with the property company.
“The parties are bound by the terms and confidentiality, while the MOU is in force and within one year thereafter,” MRC Allied said.
Subject to the outcome of the due diligence, both parties will sign a more definitive agreement covering an identified LNG project.
“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,” MRC Allied Chairman Carlos Jose Gatmaitan said in a statement.
The company is “excitedly waiting for the government to come up with the legal and regulatory framework that will govern the LNG industry,” he added.
Last month, the Department of Energy (DoE) said it is finalizing the Philippine Natural Gas Regulation (PNGR) policy in a bid to make the country an LNG transshipment hub in Asia.
The PNGR will apply policies and programs to promote and produce homegrown natural gas deposits, LNG shipments and third-party access to facilities and pipelines, among others.