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Wednesday, 29 July 09
RP COAL DEMAND TO SURGE BY 2014 - PHILIPPINES UPDATE


CEBU, Philippines - With the entry of new coal-fired power generation plants in the Philippines, the Department of Energy (DOE) projected an increase of more than 500 thousand metric tons of coal demand in a year until 2014.

A data from the DOE revealed that demand for coal in the Philippines is projected to reach at an average of 16 million metric tons by 2014, while new power plants now being built.

By the end of 2009, coal orders nationwide is seen to touch the 14 million metric tons level, from the 13 million it posted last year.

According to DOE senior science specialist Ronaldo Pendor, coal is becoming a very valuable commodity in the coming years.

DoE data further showed that coal consumption in 2007 was at 10.2-million MT, with power generation firms eating up 73.67 percent of the share at 7.5-million MT.

This was followed by cement companies with 2.2-million MT, and industrial firms at 449,701 MT.

Semirara Island, in Antique accounted for 3.5-million MT in coal production in 2007, which totaled 3.74-million MT, or 93.59 percent market share. In the Visayas, total coal production in Cebu was at 15, 438 MT and Negros with 1, 259 MT.

Coal importation in 2007 was dominated by the Indonesian market at 5.6-million MT, followed by China (1.04-million MT), Vietnam (473,032 MT), and Australia (650,000 MT).

The Philippines has to source out coal from countries like Indonesia whose coal component is “superior” compared to those found here.

Coal resources found in the country include lignite coal, hard coal, and sub-bituminous coal.

DoE 2007 data also showed that the country’s total coal reserves is at 2.4-billion MT, with positive reserves at 310-million MT and total mineable reserves at 329-million MT.

Cebu, in particular, showed coal reserves of 165-million MT, 6.9-million MT of positive reserves and 7-million MT of mineable reserves.

Pendor said the entry of more power generation firms in the next two to three years is seen to drive the demand for coal as a source for fossil fuel.

In Cebu, power consortium Cebu Energy Development Corp., composed of the Aboitiz Power Corporation, Formosa Holdings Inc., Global Business Power Corporation and Vivant Power Corporation, is now fast tracking the development of a 246-megawatts (MW) coal-fired power plant in Toledo City, Cebu. The plant is said to utilize some 300,000 MT of coal per month.

The first of the three 82-MW unit is expected to be operational by February 2010, which would address the supply and reliability problems of Cebu’s power industry.

Pendor also cited potential areas for coal mine-mouth power plants are found in Cagayan Valley for a 200-MW plant, Isabela (100-MW), Semirara, Antique (300-MW), and Sultan Kudarat (200-MW).

Earlier, Aboitiz Power Corporation (AP) president Erramon Aboitiz said that as of this time, in the Philippines, is it still expensive to source energy from renewable sources, thus utilizing imported fuel, and coal still a practical choice.
Source: PhilStar



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