PNOC unit bags 2 geothermal deals

MANILA, Philippines – PNOC-Renewables Corp., the renewable energy unit of government-run Philippine National Oil Co. (PNOC), has bagged two new geothermal exploration contracts with total potential investments of about $120 million.

Energy Assistant Secretary Mario Marasigan said the Department of Energy (DOE) has awarded the 20-megawatt Mainit-Sadanga and 20-MW Buguias-Tinoc geothermal prospects in Northern Luzon to PNOC-RC.

“The geothermal contracts have already been awarded to PNOC Renewables with its private partner, Magma Resources, taking the lead. These are frontier areas,” Marasigan said.

Magma Resources is a local group that forged a partnership with the PNOC unit for the development of the project.

Based on official company data, the Mainit-Sadanga project is estimated to cost $60 million and is estimated to generate about 18 gigawatt-hours of electricity per year.

“The proposed project will be connected to the Luzon grid. Power generated will be sold to the local electric cooperatives and industries. This shall benefit households, institutions, commercial and industrial consumers in the Mountain Province and other areas in the island of Luzon,” PNOC-RC said.

PNOC-RC’s Buguias-Tinoc geothermal project, on the other hand, will cost around $60 million and will supply the same level of electricity as the Mainit-Sadanga geothermal project.

Recently, the DOE also awarded a geothermal exploration contract to PNOC-RC to develop the Mt. Isarog volanic chain for power generation, signaling its re-entry to the geothermal energy business.

PNOC used to own the country’s largest producer of geothermal power, PNOC-Energy Development Corp., which was sold to a Lopez-led consortium in 2007 for P58.5 billion.

The Mt. Isarog geothermal project, estimated to generate 18 gwh of electricity per year, will be connected to the Luzon grid and power generated will be sold to the local electric cooperatives and industries to benefit households and industrial consumers in the Camarines province and other areas in Luzon.

PNOC-RC said it is expects to start exploration activities in Mt. Isarog in the third quarter this year.