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Wednesday, March 9, 2011

PH wants to increase coal imports from Indonesia

Wed, Mar09, 2011 16:26
By Amy R. Remo,Philippine Daily Inquirer

MANILA, Philippines—Energy Secretary Jose Rene D. Almendras is hoping to woo Indonesian coal firms, through their government, to increase their coal exports to the Philippines.

Almendras explained that he was asked by President Aquino to join him in his state visit to Indonesia to make sure “that Indonesia will be happy to sell us the coal that we need.”

“We’re not talking to the (Indonesian companies) directly. We’re talking to the Indonesian government to show our appreciation that they continue to sell us coal,” Almendras said.

The energy chief disclosed that there were also offers to increase coal supply contracts with Philippine companies, which was something that the government was aiming for given the number of new coal-fired power plants, expected to begin commercial operations over the next several years.

Although the Philippines has huge coal resources, local production remains short of demand. As such, companies secure most of their coal requirements abroad, particularly in Indonesia, which was reported to have supplied 89.8 percent of the country’s total coal imports in 2009, equivalent to 6.62 million metric tons. China provided 7.8 percent of coal imports and Vietnam, 2.4 percent.

Indonesia, to date, continues to be the Philippines’ largest source of coal, according to Almendras.

Over the next several years, the Department of Energy is anticipating the entry of new coal facilities in the main grids.

Aboitiz Power Corp. is putting up two coal-fired facilities in Subic (600 megawatts) and Davao (300 MW) to provide the much-needed additional capacities by 2014, while conglomerate San Miguel Corp. is also looking at constructing similar power plants in Mindanao.

Almendras earlier said Conal Holdings Corp. of the Alcantara family would also push through with the 200-MW coal facility in Sarangani, the first phase of which would start operating by 2012 while Phase 2 would be available by 2013. The same company, he added, would put up another 100-MW coal facility in Zamboanga.

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