Napocor signs coal supply contracts

The Philippines National Power Corp. (Napocor) has awarded multi-billion-peso worth of contracts to ensure fuel supply for the country?s coal-fired power plants this year, The Manila Times reported Wednesday.

For this month alone, Napocor has inked around 10-billion-peso (1US$=41.595 Phillipine pesos) worth of supply contracts with eight foreign firms for the plants? coal requirements in the summer months.

A large chunk of the contract amounting to 6.75 billion pesos was awarded to Chinese company Shenhua Coal Trading Co. Ltd. for the delivery of 17 shipments of 65,000 metric tons each of coal for three years at a price of $137 per metric tons (MT). The delivery is for the Sual and Masinloc plants starting July.

The other contracts went to Indonesian firm Samtan Co. Ltd. worth 663.42 million pesos at $114 per MT; Switzerland based Glencore International A.G. worth 537.19 million pesos at $182.50 per MT; and BHP Billiton Marketing Asia Pte. Ltd. worth 515 million pesos at $175.00 per MT and Straits Global Trading Pte. Ltd. worth 485.68 million pesos at $165 per MT, both of which are based in Singapore.

Napocor also signed contracts with Singaporean firm Vitol Asia Pte. Ltd. worth 454.77 million pesos at $154 per MT; Indonesian firm PT Baramulti Sugih Sentosa worth 146.40 million pesos at $133.50 per MT; and Malaysian firm Manyplus Enterprises Sdn. Bhd. worth 99.21 million pesos for the Sual plant at $130 per metric ton.

The deal inked by Napocor, which sources the fuel supply for the country?s coal plants, with the companies are for the coal requirements of the Pagbilao, Sual and Masinloc plants in the summer months. (*)