PNOC-EC to develop coal-fired power plant

Manila Times.net
Published : Monday, January 02, 2012 00:00 Written by : Euan Paulo C. Añonuevo REPORTER


Philippine National Oil Co.-Exploration Corp. (PNOC-EC) would jumpstart the development of its coal-fired power projects this year.


Joseph Omar Castillo, PNOC-EC vice president, said that the company would pursue the selection of partners for coal power projects in Isabela and Zamboanga Sibugay province.


“We will be putting priority to joint venture selection for our mine-mouth power plants,” he said.


Mine-mouth plants are generating facilities located beside mines. Because of the proximity to their fuel source, such plants generally cost less than conventional coal plants because of reduced logistics costs.


In PNOC-EC’s case, the company plans to put up coalmines in Isabela and Zamboanga Sibugay province also this year.


“Isabela and Zamboang Sibugay are underserved provinces and the plants will hopefully boost business climate and generate needed employment,” Castillo said.


Besides the two power plant projects, Castillo said they would also be looking into the construction of compressed natural gas refilling stations within Luzon.


The company would also be pushing for the more exploratory drilling at Service Contract (SC) 63.


“On SC 63, in partnership with Nido Petroleum Ltd., we are choosing a drill prospect in the area. The target time for drill is third quarter of 2012,” he said.


PNOC-EC is the petroleum and coal subsidiary of state-owned PNOC. The former’s shares of stock are 99.78 percent owned by the government through the latter, while the remaining 0.22 percent are held by public shareholders.