Euan Paulo C. Añonuevo, Reporter
Manila Times

DOMESTIC industries and power-generating companies are projected to shift to coal use in light of the increasing price of crude in the world market, an industry official said.

“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,” Rufino Bomasang, MG Mining and Energy Corp. vice chairman, said.

He said the country’s largely untapped coal resources have the potential of producing 1,000 to 2,000 megawatts of power, equivalent to up to $2 billion in investments.

These coal resources, located in Isabela (150 to 300 megawatts), Cagayan (100 megawatts), Surigao del Sur (300 megawatts), South Cotabato (300 to 900 megawatts) and Zamboanga-Sibuguey (200 megawatts), are large enough to supply major power plants for at least 25 years, the executive said.

Bomasang said several other coal deposits in Cebu, Masbate, Catanduanes, Batan Island, Negros Occidental and Samar exist. Those in the Cotabato basin, estimated to contain huge coal resources, have yet to be fully explored at depth.

“As demand continues to increase, coal mining companies realize the need to fill the void by pursuing exploration projects around the country,” he added.

The Department of Energy said coal use in the country would rise in the near future as development 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.

Data from the Philippine Energy Plan’s Coal Demand and Supply Outlook showed that about 10.177 million metric tons will be used for power generation and 2.07 million will be consumed by industries next year.

However, only about a third of this figure or 3.88 million will be sourced locally. The remaining 8.36 million will be imported from countries like Indonesia, Australia and China.

Coal demand is projected to grow steadily in the next few years to about 15.28 million metric tons in 2014 with power demand reaching 13.06 million and industries accounting for another 2.22 million.

In parallel with the increase in demand, coal production is expected to go up from 3.88 million to 6.603 million by 2014.