PNOC pushes P2.6-B expansion of Mt Apo geothermal field

Mt. Apo, Kidapawan City - The PNOC-Energy Development Corp. (EDC) will push through with the P2.6-billion optimization project of the Mt. Apo geothermal production field to help avert an impending power crisis in Mindanao.

EDC, the geothermal development arm of the state-owned Philippine National Oil Co. (PNOC), is finalizing the study on the optimization schemes which will allow the company to increase the present 104 megawatt (MW) capacity to 120 MW.

"Under our permit, we can maximize our capacity up to 120 MW. We are exploring some options that will allow us to increase the existing capacity by 10 MW to 23 MW," said Rommel Amatong, production manager of the EDC’s Mindanao Geothermal Production Field (MGPF).

The MGPF is situated in a 701-hectare property in the northwestern flank of Mt. Apo, within the boundaries of Kidapawan in North Cotabato.

The optimization project is expected to be commissioned by 2006. Based on Department of Energy (DOE) data, Mindanao will likely experience a power crisis if no new power plants or no additional capacity will be added before 2006.

The project is also among the geothermal fields to be bidded out under the Department of Energy’s Geothermal I Bidding Round scheduled in October this year.

With over 20 years of experience in geothermal exploration and development, EDC is the country’s largest producer of geothermal energy. It operates four geothermal steamfields with a total aggregate capacity of 1,148 MW.

Initially, five Japanese firms have expressed interest in investing on the optimization project, as well as the expansion program for the Rangas-Tanawon area in Sorsogon.

The five companies are Kyushu Electric Power Co. Inc. (also known as Kyuden, one of Japan’s largest power producers); West Japan Engineering Consultants Inc. (West JEC); Kansai Power Electric Co. Inc.; Marubeni Power Systems Corp. and Mitsui and Co. Ltd.

Kyuden and its subsidiary, West JEC, are developing Philippine geothermal production fields such as Bacon-Manito in the Bicol region, and in rehabilitating the Tiwi and Makiling-Banahaw geothermal plants south of Manila.

Kansai Electric holds a 7.5 percent stake in the San Roque multi-purpose project in the northern province of Pangasinan, with Marubeni holding the majority share of 92.5 percent.

Mitsui is involved in transmission projects with the government’s National Transmission Corp.