Philippine Energy News

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Sunday, September 17, 2006

Napocor power plants need P10.14B worth of fuel

The Philippine Star 09/18/2006

The National Power Corp. (Napocor) will need P10.14 billion worth of fuel for its barges and power facilities for the period May to December 2006.

Documents showed that the oil-based requirements will reach 453,415 kiloliters.

The bidding for the fuel requirement will be undertaken through open competitive bidding procedures using non-discretionary pass/fail criteria.

Interested bidders were asked to submit bids and eligibility requirements last April 25.

It was not known if Napocor has already awarded the contract for the supply and delivery of the fuel requirement for the eight-month period.

On top of this, Napocor will need P191.33 million (57,500 metric tons) worth of coal to cover the requirement of Naga-Cebu thermal power plant for the rest of the year.

The bidding, which is also through open competitive bidding, for the Naga power plant’s requirement was conducted last Sept. 12 this year.

The pre-bid conference was held last Aug. 31 at the Napocor compound in Quezon City.

In 2004, coal bulk of the generation mix of Napocor at 16,194 GWh or 28.9 percent of total.

But the share of coal in the company’s generation mix has gone down to 15,307 MW or 26 percent in 2005.

It is expected that in 2006, the share of coal in the gross generation of state-run power firm will further decrease to 25.3 percent.

Based on the Department of Energy (DOE) data, the country’s utilization of local coal has jumped to 28.7 percent in 2004 from only 10 percent in 2000, spurred by rising domestic demand.

Napocor is exploring the possibility of increasing the volume of local coal that is being used to run its coal-fired power plants.

The state-run power firm is currently blending 10 percent of local coal every month to generate power for its coal-fired facilities.

In 2004, Napocor had started to bid out for blended coal at that time when there was coal shortage in China.

Napocor is currently importing most of its coal requirement. Using blended coal, on the other hand, will enable the power firm to diversify its coal sources.

Aside from Pagbilao and Naga, Napocor runs the Calaca, Masinloc, Sual and Batangas coal-fired power plants.

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