Chinese firm to supply Manila with 1.105 mln T coal
National Power Corp, the Philippine’s largest power producer, said on Friday it had awarded a 3-year contract to a Chinese producer to supply 1.105 million tonnes of coal annually to two coal plants.
Shenhua Coal Trading Co Ltd will supply 17 panamax coal cargoes which will cost Napocor $166.5 million for the first year based on a reference price of $137 per tonne on a cost-and-freight basis, Napocor documents show.
The contract price for the second and third year will be subject to negotiation, Napocor said.
The contract to supply coal for Sual and/or Masinloc plants, was for a gross calorific value of 6,100 kcal/kg. Delivery will start at the latest, in July.
Juan Carlos Guadarrama, a senior official at Napocor said the award was still subject to approval by the government.
In February, Napocor issued an open invitation to coal producers after little success in securing bids at an auction due to tight global supply.
Napocor is left with three coal-fired power plants after it sold off the 600-megawatt Masinloc and 600-megawatt Calaca facilities as part of a privatisation programme.
It was importing coal on behalf of Masinloc pending the transfer of ownership this quarter.
For this year, Napocor needs 3.47 million tonnes of coal to keep its Pagbilao, Sual and Naga-Cebu plants running.
It sources most of its requirements from foreign producers and traders, mainly from China, Indonesia and Australia.
Tags: coal, Shenhua