PNOC-EC seeks partners for 2 power plants

MANILA, Philippines - PNOC-Exploration Corp., the oil and gas arm of state-owned Philippine National Oil Co. (PNOC), is still looking for partners for its two coal-fired power plants in Isabela and Zamboanga with a combined capacity of 200 megawatts, its top official said.

“We’re looking for joint venture partners,” PNOC-EC president Pedro Aquino told reporters, noting that Korean and Japanese investors have expressed interest in the projects.

He said PNOC-EC is eyeing to start the projects within the year, possibly in the latter part.

Aquino said they are also looking into employing a technology that would convert coal into gas, with the gas to be used as fuel for the coal plants.

“We had a meeting and somebody brought up the idea to do coal gasification wherein you convert coal into gas which is now going to be the fuel for the power plant. They say this is going to be environment friendly because all the pollutants and environmental (issues) have already been addressed by the gasification,” Aquino said.

The two coal-fired power plants in Isabela and Zamboanga Sibugay each has a capacity of 100 megawatts.

PNOC-EC earlier tapped The Lantau Group as transaction advisor for the two projects.

For the Isabela power plant, the partner will be in charge of the mine and power development component.

The Isabela power plant is intended to utilize the ignite coal within PNOC-EC’s coal concession in the area which has reserves estimated to be sufficient for a 100-MW station, the company said.

Furthermore, the partner is expected to operate the power station and market the generated electricity.

The proposed power project in Zamboanga Sibugay, meanwhile, will utilize the bituminous coal reserves from PNOC-EC’s Malangas coal mines, the company said.

Coal reserves from this area are estimated to be sufficient for a 50-100 MW station.

As with the Isabela plant, the partner for this plant will be involved in the development and operation of the power plant as well as marketing the generated electricity to buyers.