Despite the Department of Energy’s (DOE) moratorium on new coal projects, it was specified that the coal ventures of state-run Philippine National Oil Company-Exploration Corporation will not be covered by that investment prohibition.

Energy Secretary Alfonso G. Cusi qualified the PNOC-EC projects are not included because these were already firmed up even prior to the moratorium declaration.

To recall, PNOC-EC is pursuing several coal exploration projects in Zamboanga Sibugay in Mindanao; as well as Isabela province in Northern Luzon and part of that undertaking is a targeted development of coal mine-mouth power facility.

“That (PNOC-EC projects), we will continue to do. Because what PNOC-EC is pursuing are already committed projects,” the energy chief has emphasized.

He added the department will support the investment proposition of the state-run company for a mine-mouth power venture, especially if that will eventually turn out commercially viable and technically feasible.

PNOC-EC’s thrust toward energy independence and security goal for the country is two-pronged: one is on exploration and targeted development of indigenous oil and gas; and the other is on bringing coal exploration ventures to fruition.

The energy department itself had just affirmed the “completeness” of the new coal operating contract (COC) application that PNOC-EC had submitted for two blocks in Zamboanga Subugay. It will still need to do undergo post-qualification process before final project award is carried out.

For the Isabela project, PNOC-EC’s initial studies indicate that the proposed mine-mouth generating facility will be utilizing 20 million metric tons of coal; and this will serve as the first one of such type of installation in the country.

The energy chief sounded off that “despite the pandemic, the DOE is committed to tap potential energy exploration so the country could further attain its energy security and sustainability.”

Cusi added “we are pursuing to harness all our indigenous energy resources as well as we continue to usher in economic progress amidst adversities.”

Beyond the PNOC projects, the DOE secretary noted that the moratorium will not also include other existing coal-fired power projects that are already at ‘committed level” on project implementations; and the department will likewise process pending applications including those that are of ‘indicative status’ at this stage.

The department further asserted that the investment cessation may only stay until such time that the country is not yet in need of new base load capacity; and the government may still allow coal plants if these will be utilizing high-efficient technologies.


“We understand that there are many groups lobbying to totally stop investments on coal. But we cannot do that because our country has energy needs that we will need to address,” the energy chief said.