BIZ BUZZ: MGEN checks out coal facility prospects

The booming power generation arm of tycoon Manuel V. Pangilinan has shown an early interest in a government plan to have the country’s first coal blending terminal.

Energy Secretary Sharon Garin’s pitch has indeed landed on Meralco PowerGen Corp.’s (MGEN) radar, with its big boss saying it is “something [they] would be interested in exploring.”

“We would be interested in learning more about the DOE’s (Department of Energy) proposed framework, including the commercial structure and how the private sector consortium would participate,” MGEN president and CEO Emmanuel Rubio told Biz Buzz.

Speaking to reporters last week, Garin said she hoped major power players would chip in and form a consortium to erect a facility meant to pump up the use of domestic coal supply, as the Philippines continues to be vulnerable to foreign policy changes and market shocks.

While the private sector gets to lead the development and operation of the proposed asset, Garin said the government would just sit on the sidelines for “a certain overview or supervision.”

Mindanao is being considered as the potential location given the presence of a few coal sites in the region and port terminals, giving potential coal buyers better logistics access.

The concept is that the blending terminal’s operator will source the supply from domestic and foreign markets.

The facility will then mix high-grade coal and cheaper low-grade coal and adjust the content to produce coal blends suited for different industrial requirements.

Having this facility would be a win for the local market, Rubio said, as this could “strengthen fuel security and supply flexibility for coal-fired power plants, particularly by providing access to a broader range of coal sources and specifications.”

“From our perspective, initiatives that improve the reliability and resilience of the fuel supply chain can also support the dependable operation of our plants and, ultimately, contribute to the country’s energy security,” he added.