PNOC-EC eyes tieups to develop P5-B mine-mouth coal plant in Isabela

April 27, 2010 8:06 pm 

By Marie S. Neri

MANILA, April 27 —PNOC-EC, the exploration arm of the Philippine National Oil Company (PNOC), is looking at entering into a partnership with local or foreign investors in developing the P5-billion mine-mouth coal plant in Isabela.

"PNOC Exploration will need a partner for this because of the cost. San Miguel Corp. offered an unsolicited proposal but there is no development yet," a source, who declined to be named, said.

PNOC-EC expects to start the development of the Isabela coal plant in the first quarter of 2011 and will be completed by 2013.

Assessment and evaluation conducted by the PNOC EC indicated that coal contracts in Isabela has validated and confirmed the presence of 24.6 million metric tons of "measured" reserves and 3.7 million metric tons of "indicated" reserves, or total estimated resource of 28.3 million metric tons.

The Department of Environment and Natural Resources (DENR) has granted PNOC-EC an environmental clearance certificate for its mine mouth coal project.

In a disclosure to the Philippine Stock Exchange, PNOC-EC said that the project involves the putting up a power plant with a generating capacity of 30 to 100 megawatts, utilizing the low-rank coal in the province.

"The environmental impact statement was submitted to DENR- Environmental Management Bureau and the ECC was issued in February. Studies on the mine mouth power plant design and costs optimization were conducted," PNOC-EC said.

PNOC-EC is the holder of coal operating contract no. 122, which covers portions of Cauayan City and the municipalities of Naguilian and Benito Soliven in Isabela.

"The preparation of the terms of reference for the grid impact study, mining plant, front end engineering design and the land acquisition and relocation plan is ongoing," the company said.

PNOC EC is just awaiting the approval of its permit to operate from the local government to officially start the project. (PNA)

RMA/MSN

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