Napocor to seek add’l coal supply from other countries

The National Power Corp. (Napocor) will tap other countries for its additional coal requirements, a top company official said yesterday.

Napocor president Rogelio Murga said there is a need to diversify its sources of coal due to the tight coal supply in China, where most of the power firm’s coal needs are being sourced.

Murga said the state-run power firm will explore other sources, among them Indonesia, Australia, South Africa and Russia.

"We are pursuing the importation of coal from Australia, South Africa and Russia, and are looking at importing additional volumes from Indonesia," he said.

The Napocor official said the move was in anticipation of a possible significant cut in the volume of China’s coal exports following the reported pronouncement of the State Council of China that all coal producers shall prioritize supply to Chinese coal-fired plants.

Despite the coal situation in China, however, Murga assured that Napocor’s coal-fired plants have enough inventory at present.

Murga said they have several other options in the event of a shortage, like sourcing local coal products.

He said local coal producer Semirara Mining Corp. has signified its willingness to supply at least 60,000 metric tons of coal per month to the Masinloc power plant in Zambales, if necessary.

Napocor has also sounded out three of its existing suppliers from Indonesia – PT Indominco, PT Arutmin, and PT Jorong – for additional shipments.

Murga said Napocor has asked the Department of Energy (DOE) for clearance to secure as much coal as possible, using the fastest contracting means, from alternative suppliers.  

"This is already being done by other Asian utilities because they are aware of the coal supply situation worldwide," he said.

Once it gets the go-signal from the DOE, Napocor will conduct a limited bidding among Australian and Indonesian coal suppliers within the next few weeks. 

At present, coal accounts for the biggest share of Napocor’s generation mix, which refers to the proportion of the different fuel types that it uses to run its power plants.

In the first semester of 2003, Napocor’s coal-fired plants represented a 32.37-percent share in the generation mix, compared to 26.6 percent share of the geothermal plants and the 14.77 percent share of the hydroelectric plants.

In 2002, the full-year share of coal in the generation mix stood at 37.82 percent, up from the 2001 figure of 31.12 percent.