Napocor buys 585,000 tonnes of coal from Indonesia

Reuters

Posted at Feb 04 2009 05:07 PM | Updated as of Feb 05 2009 01:37 AM

MANILA  - The Philippines' biggest power producer has bought 585,000 tonnes of coal from three Indonesian suppliers, its first purchase since July after failing to award tenders because of high prices.

Australian thermal coal prices, a benchmark for Asia, were quoted around $83 a tonne at the start of the week, down nearly 60 percent from a record peak above $200 a tonne in July last year.

PT Trubaindo Coal Mining, PT Indominco Mandiri and PT Kaltim Prima Coal will supply coal starting this month to National Power Corp's (Napocor) Sual and Pagbilao power plants, both located in the northern Luzon region, according to data posted on the state power company's website.

Napocor said the contracts were awarded on Dec. 18 following tenders on Nov. 26 and 27. The results were posted on the company's website earlier this week.

Kaltim Prima bagged a supply contract for a total 130,000 tonnes of steam coal, composed of one panamax-sized shipment and the remainder to be shipped through eight barges.

The first 65,000 tonnes, at $105.5 per tonne, cost and freight, is for delivery between Aug. 28 and Sept. 6. The remaining 65,000 tonnes, at $110.95 a tonne, C&F, is for delivery in June. The contracts were higher than Napocor's budget by 3 to 14 percent.

Trubaindo will supply 130,000 tonnes of steam coal at $115.29 a tonne, c&f, to the Sual plant for delivery in April and May, a deal that is nearly 9 percent above Napocor's budget.

Trubaindo will also ship another 130,000 tonnes to the Pagbilao plant at $105.93 a tonne, C&F, slightly under the government budget, in June and July.

A third company, Indominco Mandiri secured a contract to supply a total 195,000 tonnes of steam coal to Pagbilao at $102.32 a tonne, C&F, for delivery in February, March and September. The price was 3.5 percent lower than Napocor's budget.

Napocor has said it will import 3.16 million tonnes of coal to feed its coal-fired power plants this year, down from 4.18 million tonnes in 2008, as it has privatised a number of power stations.