Trans-Asia Oil: We won't compete with coal suppliers

Posted at 10/26/12 11:49 AM

MANILA, Philippines - Coal and oil producers will not be competing against each other to supply power generators.

When Coal Asia Holdings debuted this week at the Philippine Stock Exchange, company officials said they were excited over the number of coal-fired power plants mushrooming around the country, including the conversion of bunker fuel plants into coal-fired plants by some manufacturing companies.

Francisco Viray, chief executive officer of Trans-Asia Oil and Energy Development Corp., though doesn't see coal as a threat to oil suppliers.

"Coal power plants have their own niche in the industry, as base load plants, bunker oil-fueled plants have their own place, as peaking plants. So coal will compete with coal, oil will compete with oil," he told ANC.

"I don't think they will compete against each other because they are after different components of the load of the market," he added.

Trans-Asia is currently re-organizing itself, separating its oil exploration business from its power generation business.

Its oil assets will be moved to Trans-Asia Petroleum, while its power generation business, which generates the bulk of the company's income, will remain under Trans-Asia Oil and Energy Development Corp.

Viray says they plan on adding coal-fired plants to their generation portfolio.

"Right now our portfolio is made up purely of bunker fuel plant. In 2014, we'll have the coal plant... We are currently putting up a 150MW plant, coal, together with Ayala, a 50-50 joint venture with them," he said. - Warren de Guzman, ANC