PNOC unit to spend $40M on geothermal proj in Negros Oriental

PNOC-Energy Development Corp., a subsidiary of the state-owned Philippine National Oil Co. (PNOC), is planning to spend as much as $40 million for a geothermal development project in Dauin, Negros Oriental.

EDC president and CEO Paul Aquino said the company has previously conducted tests and drilled wells in the site during the 1970s until the 1980s.

"We will revisit the site and check if we can now find geothermal energy there," he said, noting that the area has an estimated potential reserve of 20 to 40 megawatts (MW).

The Dauin geothermal prospect is situated six kilometers southeast of the Southern Negros geothermal production field. Between 1973 and 1977, surface exploration surveys were conducted in the Palinpinon and Dauin prospect areas to determine their potential for geothermal development.

Results of the surveys showed higher reservoir temperatures in Palinpinon compared to Dauin. Hence, advanced exploration activities were focused in Palinpinon area which is now producing 112.5 MW of power.

In 1981, additional surface investigations were done in Dauin consisting of tandem geochemical-geological surveys. As a result of these studies, two exploration wells were drilled in 1982-83 to test the geothermal potential of the area.

Results of the two drillings showed that the size of the Dauin geothermal resource is at least eight square-kilometers.

Taking into consideration the results of the previous drillings, EDC is planning to drill the third exploration well soon. It is expected that the drilling, discharge and integrated evaluation will be completed in less than two years.

Should the prospect prove economical, development drilling and construction of all facilities for power generation will be completed in four to five years.

EDC is the country’s largest producer of geothermal energy, accounting for more than 60 percent of installed generating capacity.

The company’s four geothermal fields in Leyte, Negros Oriental, Albay/Sorsogon and North Cotabato have a total capacity of 1,149.4 MW.

In 2006, it will commission two more geothermal projects, the 40-MW Northern Negros and the 20-MW Palinpinon 2 optimization power plants.

By 2006, EDC will enter into wind power generation with the commissioning of the first 40 MW of its Northern Luzon Wind Power Project (NLWPP) in Burgos, Ilocos Norte.