MRC Allied, China firm eye LNG projects

As published on BusinessInquirer

MRC Allied Inc. said it had signed a memorandum of understanding (MOU) with China Energy Engineering Corp. Ltd. (CEEC) on possible liquefied natural gas projects in the Philippines.

The MOU confirmed that both parties had interest in exploring the possibility of investing, constructing, developing and operating LNG projects in the country, MRC Allied said in a report to the Philippine Stock Exchange.

The Beijing-based CEEC has built projects related to multipurpose water facilities like the Three Gorges as well as fossil fuel power plants, nuclear power plants, offshore wind farms and power transmission networks.

"The potential partnership with [CEEC] is in line with the current thrust of management to diversify into the clean and renewable energy portfolio,” MRC president and chief executive Gladys Nalda said in a statement.

“This is likewise part of our aggressive effort to develop at least 1000 megawatts of clean and renewable power in the next five years,” Nalda said

"Management plans to create a subsidiary that will focus on the development, construction and operation of all its LNG projects.”

MRC had so far a total of 160 MW of generating capacity through solar power projects in the pipeline.

The execution of the MOU follows MRC’s announcement in July of a similar exercise with CEEC unit China Energy Engineering Group Guangdong Power Engineering Co. Ltd. or Energy China GPEC.

With that, Guangzhou-based Energy China GPEC was set for a year-long conduct of due diligence to help in deciding whether it does want to pursue projects with MRC.

In its website, Energy China GPEC said it had built nearly 200 large and medium-sized conventional coal-fired power stations, nuclear power stations, combined cycle power stations, self-provided power and diesel power plants—both in China and abroad.