PNOC-EC readies upgrade of coal storage terminals

Business World Online
Posted on September 27, 2011 10:53:37 PM


STATE-RUN PHILIPPINE National Oil Co.- Exploration Corp. (PNOC-EC) has begun planning coal terminal upgrades to accommodate a targeted increase in its trading business, a company official yesterday said.
“Our next project is our coal terminals in Mabini [Batangas], Bauang [Cebu], Zamboanga Sibugay and North Harbor. We’re in the initial process of how we can improve the terminals,” PNOC-EC Chairman and Chief Executive Gemiliano C. Lopez, Jr. said in a telephone interview.


The coal terminals serve as handling facilities for local and imported coals which PNOC-EC supplies to power plants and cement factories.


The company wants to elevate the coal terminal in Zamboanga Sibugay, for instance, Mr. Lopez said.


Mr. Lopez said there is no estimated amount yet for the improvement of the facilities but he said “there is enough money to be appropriated for all our projects.”


Coal trading is one of the company’s biggest revenue generators.


PNOC-EC’s Mabini coal terminal helped drive the company’s first-half growth along with the royalties from the Malampaya natural gas project according to earlier reports.


PNOC-EC started developing another site, the Lumbog coal mine on Aug. 24 with an eye for production in 2013.


The Lumbog coal mine in Zamboanga Sibugay is located in coal operating contract 41 in Zamboanga. It is one of three mines, Lower Butong, Sta. Barbara and Lumbog, which are part of the Malangas Project Operations development area.


It is expected to produce 1.39 million metric tons.


The estimated cost of the Lumbog mine is P818 million. PNOC-EC earlier earmarked P1.35 billion for the Lower Butong and Sta. Barbara projects.


The Lumbog project, along with the Sta. Barbara and the Lower Butong mines, is expected to augment PNOC-EC’s coal production by 800,000 metric tons per year.


For the first half of the year, PNOC-EC posted a 52.4% increase in net income to P1.5 billion from P999.4 million in the same period last year.


Shares in PNOC-EC’s Class A shares, or shares that can be bought only by Filipinos, remained unchanged at P24 apiece on Monday as were Class B shares, which can be bought by Filipinos and foreign investors, at P52 a piece. -- Emilia Narni J. David