Mine-mouth coal plants priority of PNOC-EC in ’12

Business World Online
Posted on January 01, 2012 11:21:37 PM


GOVERNMENT-LED PHILIPPINE National Oil Co.-Exploration Corp. (PNOC-EC) is focused on selecting a joint-venture partner for its 100-megawatt (MW) coal-fired power plant in Mindanao, an official said in an interview.
The company will also construct compressed natural gas (CNG) stations and drill exploration wells in one of its service contracts.
“PNOC-EC’s focus next year [is the] joint-venture selection for our mine-mouth power plants, CNG station construction, exploration drilling on service contract 63 and first production in the Lumbog coal mine, ” vice-president for business operations Joseph Omar A. Castillo said in a text message.
The company is looking to develop two 100-MW coal-fired power plants near its coal mines in northern Luzon and Mindanao. A mine-mouth plant located near a coal mine limits the transportation cost of fuel.
Last year, PNOC-EC prioritized development of coal mines in Mindanao over the construction of the mine-mouth plant.
“The power plants are at 100 MW each. It will be coal-fired from PNOC-EC’s coal mines and will be the first in the country. It will reduce the logistics cost of transporting coal, ” Mr. Castillo said.
“Isabela and Zamboanga Sibugay, where our mines are located, are underserved provinces so the plants will hopefully boost business climate and generate needed employment, ” he added, saying the plants are “estimated to cost $200 million each.”
The selection of a joint-venture partner for the power plant will be done through a bidding.
Mr. Castillo said the company is also in the process of “choosing a drill prospect in the service contract 63 with partner Nido [Petroleum Ltd.]. Target time for drill is third quarter of 2012.”
Service contract 63, East Sabina block, covers 10, 560 square kilometers in southwest Palawan. PNOC-EC holds a 50% interest in the area and is the operator of the block. Australian firm Nido Petroleum owns 50%.
PNOC-EC holds several service contracts mostly in the Palawan area and is one of the consortium members in the Malampaya natural gas field.
The company is also tasked to construct more CNG stations to service the planned increase of CNG buses plying the roads by the Energy department.
PNOC-EC saw its net income for the nine-month period ending September grow 55% to P2.46 billion from P1.7 billion in the same period previous year.
The company was able to remit P4.997 billion to the national government through dividends of P5 billion it declared within the year.
PNOC-EC’s “A” shares, which can only be traded by local investors, were last traded in October 2010 and closed at P24 a piece.
Its “B” shares, which are traded by both local and foreign shareholders, closed at P65 apiece. -- Emilia Narni J. David