PNOC lays out reorganization plan

By Danessa Rivera (The Philippine Star) | Updated April 30, 2017 - 12:00am

http://www.philstar.com/business/2017/04/30/1695115/pnoc-lays-out-reorganization-plan

MANILA, Philippines - State-run Philippine National Oil Co. (PNOC) is seeking clearance from the Governance Commission For GOCC (GCG) to pursue its reorganization and transform from a holding company to an operating firm.

The company requires more people as it enters its first year as an earning government-owned or controlled corporations (GOCC), said PNOC president Reuben Lista.

“I called commissioner Samuel Dagpin to consider our request for reorganization because I need the people for our projects to run because this is our first year to be operational,” he said.

Under its reorganization plan, PNOC would need 253 personnel. Currently, its workforce is at 102.

Lista said the company is eyeing to hire overseas Filipino workers (OFWs) in Qatar, Oman, Dubai and UAE who have experience in the power sector.

“We’re thinking of getting OFWs. We are using the embassies to scout some of them,” Lista said.

PNOC hopes to secure GCG’s go-signal before it can start implementing its planned liquefied natural gas (LNG) terminal.

“Before the LNG plants can start operating, we have to train and get people already. This is our first request with CGC, I hope they understand the urgency,” he said.

The LNG terminal will be composed of an initial 200-megawatt power plant, storage facilities, liquefaction and regasification units.

At present, PNOC is only an investment and holding company for government’s oil and gas exploration and renewables businesses. It also earns from interests in bank investments and receivables from the Malampaya gas project.

But in 2014, the GCG directed PNOC to transform itself from a holding company into an operations company “to take upon itself the implementation of the ongoing or incipient programs of some of its subsidiaries, as well as any new programs it may develop in the future.”

NGCP pushes Vis-Min interconnection

By Danessa Rivera (The Philippine Star) | Updated April 30, 2017 - 12:00am

http://www.philstar.com/business/2017/04/30/1695119/ngcp-pushes-vis-min-interconnection

MANILA, Philippines - The National Grid Corp. of the Philippines (NGCP) is seeking industry and public support as it has filed an application for the implementation of the Visayas-Mindanao Interconnection Project (VMIP) in support of the government’s priority program on island interconnections.

The application for provisional authority (PA) is the result of an NGCP-commissioned hydrographic survey conducted from September to November 2016.

“NGCP submitted to the Energy Regulatory Commission its application for the implementation of the VMIP. This comes after years of research and careful planning. Finding the safest and most viable route for the project was a long and tedious process, given the many challenges that faced us, like unexploded ordinances, fault lines, and submarine volcanic activity. We needed to be careful and sure, as this is going to be the biggest project in the history of the Philippine power industry,” the grid operator said in a statement.

Earlier studies on the project, which focused on the eastern route from Leyte to Surigao, revealed various obstacles including live ordinance (torpedoes and high explosive shells) from the Battle of Surigao in 1944, an underwater volcano, fault lines and seismic hazards such as unstable rock slabs.

The results of previous feasibility studies before NGCP took over transmission operations prompted the company to look for alternative routes.

Based on the new survey results, the most viable route  is beginning in Cebu and terminating in Dipolog.

NGCP has made subsequent preparations including the conceptual design, detailed cost-estimate, and update of the system simulation study using the Cebu-Dipolog route in the ERC application, while inland and route surveys for substations and overhead transmission lines were simultaneously being conducted.

“As soon as ERC grants us the provisional authority, NGCP will immediately put into motion plans that will lead to the eventual unification of the country’s three main grids. Barring any delays, we hope to get this done by 2020,” it said.

NGCP sought the support of the public and its stakeholders, especially communities that will be traversed by the project, given the magnitude and potential impact of this undertaking.

“We want this completed on-time, making sure that quality of power transmission lines, facilities and services is not compromised. NGCP needs the full support of the government, Energy Regulatory Commission, Department of Energy, Department of Environment and Natural Resources, and the different local government units to ensure its timely and quality implementation,” the grid operator said.

Mining, steel sector to propel growth beyond 7% — DOST exec

 (The Philippine Star) | Updated April 30, 2017 - 12:00am

http://www.philstar.com/business/2017/04/30/1695120/mining-steel-sector-propel-growth-beyond-7-dost-exec

MANILA, Philippines - The country will achieve growth rates surpassing the seven percent mark by unleashing the huge potential of mining and the revitalization of the steel industry, according to a ranking executive of the Department of Science and Technology (DOST).

DOST executive director of the Philippine Council for Industry, Energy and Emerging Technology Research and Development (PCIEERD) and concurrently, Stratbase ADR Institute (ADRi) trustee Dr. C.P. David said inconsistent policies and the lack of a long-term development agenda for the country’s natural resources have delayed the efficient harnessing of an estimated $1.4 trillion in mineral reserves.

“Hence we see the urgent need to partner with the mining industry in a series of research projects to develop a long-term national road map that will integrate the development of mining, steel and other downstream industries,” he said.

The strategic role and potential of the mining industry issues blocking the revitalization of vital industries, such as steel and manufacturing, were highlighted during the signing of a memorandum of agreement between the DOST-PCIEERD and the Chamber of Mines of the Philippines.

The partnership was forged based on inputs from the mining industry, academe and environmental advocates through consultations organized by the Stratbase ADRi in partnership with the Philippine Business for Environmental Stewardship (PBEST).

Mining is a recognized industry in the Philippines engaged in the extraction of natural resources, which, if done properly, has a vast potential in contributing to the country’s economic development.

 “Understanding the complex issues of mining while balancing the environmental protection and economic development must be based on sound scientific study and data. We need to tap the expertise and resources of the private sector to work closely with government to ensure that the government comes up with right policies,” said Ysan Castillo, secretary-general of PBEST and Stratbase ADRi fellow. 

Castillo said the objective of this partnership is to utilize the research and development arm of the government and the available talent and resources of the mining industry in the development of an integrated long-term strategic road map for the efficient harnessing of the country’s rich natural resources in the context of responsible mining and environmental stewardship.