Napocor to tender for 3 coal cargoes

ABS-CBN News

Posted at Jun 30 2008 05:38 PM | Updated as of Jul 01 2008 01:38 AM

Reuters

The Philippines' top power producer said on Monday it would tender for three 65,000 ton thermal coal cargoes for its Sual plant for delivery from August to December.

The tender, to be opened on July 23, was for coal with a gross calorific value of 5,960-6,750 kcal/kg as received basis, the National Power Corp (Napocor) said on its Web site.

Napocor said the budget for the Sual tender would be set two days before the auction, based on published market rates such as globalCOAL, Platts or Barlow Jonker. The pre-bid conference is on July 8.

The three coal stems for the 1,294-megawatt Sual plant, located in Pangasinan, north of Manila, are slated for August 25 to September 3, November 15 to 24 and December 9 to 18.

Napocor declared its last two tenders a failure because suppliers either found the government's budget too low or they lacked the needed volume.

At a June 13 tender, Napocor had set a budget of $139 per ton for the Sual coal and $135 per ton for coal for the Pagbilao power plant on a free-on-board basis.

Coal prices have risen to $172 a ton FOB at Australia's Newcastle port, a benchmark for Asia, as surging oil helps drive up energy costs across the globe.

Napocor sources most of its requirements from foreign producers and traders from China, Indonesia and Australia.