SEOUL -- SK E&S, a South Korean energy company involved in gas field development and power generation, jumped into the international race to participate in liquefied natural gas (LNG) projects in the Philippines.
SK E&S said Thursday that it has signed a letter of intent (LOI) with the Philippines' Department of Energy to participate in a project worth 1.8 trillion won ($1.68 billion) to build an LNG terminal with a capacity of up to five million tons per year, LNG power plans and pipelines on Luzon Island.
It was not clear when the final contractor will be selected, but the LOI was part of an energy cooperation agreement signed at the end of a summit this week in Seoul between South Korean President Moon Jae-in and Philippine President Rodrigo Duterte.
Many foreign companies are competing to participate in gas projects in the Philippines as Malampaya, the country's only source of natural gas, is expected to be exhausted by 2024. The gas field provides more than 40 percent of Luzon's power requirements.
Power demands are increasing rapidly in the Southeast Asian country due to aggressive economic development. To curb price spikes for electricity, Duterte targets total household electrification before he leaves office in 2022.
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