China assures RP of continuous coal supply despite regional shortage

The Chinese government has committed the continuous supply of coal to the National Power Corp. (Napocor) despite the prevailing coal shortage in the region, a top energy official said.

"China assures us that it will find ways to continue supplying coal to Napocor regardless of issues which could limit coal production," Energy Secretary Vincent S. Perez told a press conference over the weekend.

China, the world’s second largest coal exporter at 20 million tons a year, is further expected to increase its supply by 17 percent.

Perez said that during his bilateral cooperation talks with Zhang Guabao, the vice chairman of China’s National Development and Reform Commission, the Philippines has asked China if it could supply at least 1.5 million tons of coal every year.

"We told them our requirements and they took note of it," Perez said.

The Philippines sources 50 percent of its total coal requirements from China.

Imports provide for most of Napocor’s coal needs. Aside from the Calaca and Masinloc plants, Napocor runs the Naga and Batangas coal-fired power plants while Pagbilao and Sual are its independent power producers (IPPs) also powered by coal.

The DOE has authorized Napocor to source out its coal requirements anywhere in the world. With the DOE’s approval, Napocor started eyeing coal suppliers from Australia, South Africa, Indonesia and Russia.

Aside from this, Napocor will also enter into longer-term contracts with these new coal suppliers.

Aside from China, Perez said they have also concluded bilateral talks with some Taiwanese firms like Chinese Petroleum Corp. and Taiwan Power Corp. which are interested in the country’s oil and gas exploration as well as Napocor’s privatization.

"The DOE has invited Taiwan Power to consider our generation assets," Perez added.

Perez said there were also renewed interests from the private and government sectors in various countries such as the US, Australia, Thailand, Cambodia,, Korea and Japan.