Wednesday, November 28, 2007 Coal demand still high
AS MORE companies shift to cheaper fuel sources such as coal, demand would still be high and the Philippines is expected to purchase majority of its coal requirement overseas.
Citing the Philippine Energy Plan’s Coal Demand and Supply Outlook for 2008, MG Mining and Energy Corp. (MGMEC) vice chairman Rufino Bomasang said coal demand is expected to go up to 12.246 million metric tons (MT) next year.
Based on the plan, 10.177 million MT will be used for power generation and 2.07 million MT will be consumed by industries next year.
But only 3.88 million MT of coal will be locally sourced while the remaining 8.36 million MT will be imported from coal producing countries like Indonesia, Australia, and China.
"As coal demand continues to increase, coal mining companies realize the need to fill the void by pursuing coal exploration projects around the country,” Bomasang said.
From more than 12 million MT next year, coal demand is projected to grow steadily in the next few years to about 15.28.31 million MT in 2014 with coal for power demand reaching 13.06 million MT and industries accounting for 2.22 million MT.
On the other hand, Bomasang said coal production is expected to go up from 3.88 million MT to 6.603 million MT by 2014.
The Department of Energy (DOE) said the increase production is expected in the near future as new contracts reach full blown production while exploration contracts are converted to production agreements.
Consumption will also grow as new coal-fired power plants are installed and industries switch to coal because of the highly volatile price of oil.
MG Mining and MGMEC specializes in coal mining exploration and extraction as well as processing and trade of coal and other energy related products.
In the past two years, the company has focused on the development of coal assets through the acquisition of Coal Operating Contracts (COCs).
These COCs grant MGMEC the exclusive right to explore, develop, and extract coal from its mine sites, and market coal found in the respective areas.
The country’s largely untapped coal resources, Bomasang said, have the potential of producing 1,000MW to 2,000MW of power, equivalent to up to $2 billion in investments, for at least 25 years.
"Coal is a cheaper alternative to other energy mix. Coal is indigenous and we have untapped potential in our own backyard that we can explore," the executive said.
He added that the country also has coal resources large enough to supply major power plants for at least 25 years and these are located in Isabela (150 MW to 300 MW), Cagayan (100 MW), Surigao del Sur (300 MW), South Cotabato (300 to 900 MW) and Zamboanga-Sibuguey (200 MW).
Other coal deposits are located in Cebu, Masbate, Catanduanes, Batan Island, Negros Occidental, and Samar while those in the Cotabato basin, estimated to contain huge coal resources, have yet to be fully explored at depth. (MSN/Sunnex)
