PNOC-EXPLORATION CORP., the upstream oil and coal arm of state-run Philippine National Oil Co., is investing close to P5 billion ($100 million) to develop a coal production mine and a 100-megawatt power plant in Isabela.
Rolly V. Oliquino Jr., PNOC-EC project officer for downstream natural gas development projects, said the company would finally push through with the development of nine coal blocks covering 9,000 hectares in the city of Cauayan and the municipalities of Naguilian and Benito Soliven in Isabela.
PNOC-EC targets to start developing the mine and putting up the power facility by 2012 and complete the projects by 2015. The coal mine is expected to commence production a few months ahead of the commissioning of the power plant.
With coal reserves estimated at 28 million metric tons, a 100-MW facility can operate for 25 years, Oliquino added.
According to Oliquino, PNOC-EC was in talks with two local firms and one foreign company for the power plant component of the project. For the coal mining aspect, however, PNOC-EC intends to proceed with the project on its own.
While he declined to identify these companies, he said PNOC-EC might be able to announce its partner by the end of the year. Sources earlier said diversifying conglomerate San Miguel Corp. had expressed interest in this particular power project.
The company official stressed the significance of the coal project in addressing a probable power supply shortage in the Luzon grid and the growing electricity demand in the province. Currently, Isabela I Electric Cooperative Inc. and Isabela II Electric Cooperative Inc. have a combined peak demand of 80 MW.
Robert T. Francisco, another project officer at the PNOC-EC, disclosed that the proposed minemouth coal power plant would have a minimum generating capacity of 50 MW, which could later be increased to 100 MW.
Early this year, PNOC-EC managed to secure the environmental compliance certificate (ECC), one of the more crucial requirements that would allow a proponent to proceed with a project.
