Upstream Coal Sector

The upstream coal sector covers the exploration, development, and production of indigenous coal resources in the Philippines, administered by the DOE through Coal Operating Contracts (COCs). Despite the 2020 moratorium on new coal-fired power plants, indigenous coal resource development continues as coal remains central to the country’s power generation in the short-to-medium term [PEP 2023-2050 Vol. II, p.10, 2023]. See Coal Moratorium (2020) .

2022 Status

Coal accounted for approximately 60 percent of the country’s power generation in 2022 [PEP 2023-2050 Vol. II, p.10, 2023].

Indicator2022 Value
Domestic production16.06 MMMT
Total consumption36.14 MMMT
Fuel input to CFPPs32.45 MMMT (89.8% of consumption)
Other industries (cement, iron, steel)3.69 MMMT (10.2%)

The gap between domestic production (16.06 MMMT) and total consumption (36.14 MMMT) reveals a ~20 MMMT import shortfall — the Philippines imports substantially more coal than it produces domestically. Indonesia supplies 97.7% of coal imports [PEP 2023-2050 Vol. II, p.10, 2023]. See Energy Import Dependency .

Coal Operating Contracts (COCs)

As of 30 June 2023, 29 active COCs are under DOE supervision: 20 in development/production phase, 9 in exploration phase. The largest domestic coal operator is Semirara Mining and Power Corporation.

New COCs awarded under PCECP between 2021 and 2023:

  • COC 204 — PNOC-EC (2 coal blocks, Malangas, Zamboanga Sibugay; effective 3 September 2021)
  • COC 205 — EFH Energy Tribe Corporation (9 coal blocks, Asturias, Carmen, Compostela and Danao City, Cebu; effective 27 May 2022)
  • COC 206 — Sunwest Oil and Gas Inc. (9 coal blocks, Rapu-Rapu, Albay; effective 22 July 2022)
  • COC 207 — Grand Thermal Power Corporation (7 coal blocks, Trento, Agusan del Sur and Bislig City, Surigao del Sur; effective 22 July 2022)
  • COC 208 — Vintage-21 Coal Mining Corporation (4 coal blocks, Boston, Davao Oriental and Lingig, Surigao del Sur; effective 20 March 2023)

[PEP 2023-2050 Vol. II, pp.10–11, 2023]

Coal Reserves (2022)

The Philippines has 17 coal regions with a total resource potential of 2,366.7 MMMT [PEP 2023-2050 Vol. II, p.12, 2023].

CategoryAmount
Resource potential2,366.7 MMMT
Positive reserves347 MMMT
Probable reserves194 MMMT
In-situ reserves315 MMMT
Mineable reserves386 MMMT

Largest single resource: Semirara Island, Caluya, Antique — ~550 MMMT [PEP 2023-2050 Vol. II, p.12, 2023].

Supercritical Coal Technology

Three supercritical coal-fired power plants are operating as of 2023, representing a technology upgrade intended to reduce coal’s environmental impact per kWh:

PlantCapacityLocationCommissioned
San Buenaventura Power Ltd. Co (SBPL)528.1 MWMauban, Quezon2019 (first in PH)
Masinloc Power Partners Co. Ltd.351.8 MWMasinloc, ZambalesDecember 2022
GNPower Dinginin Ltd. Co. (Unit 1)725 MWMariveles, BataanDecember 2021
GNPower Dinginin Ltd. Co. (Unit 2)725 MWMariveles, BataanOctober 2022

[PEP 2023-2050 Vol. II, p.11, 2023]

Upstream Coal Roadmap (2023–2050)

HorizonPeriodResources TargetProduction Target
Short-term2023–2024+60 MMMT from COCs and SSCMPs30 MMMT
Medium-term2025–2028+5 MMMT80 MMMT
Long-term2029–2050+45 MMMT65 MMMT

Total additional resources target: 110 MMMT through 2050; total production from active/producing COCs: 175 MMMT [PEP 2023-2050 Vol. II, p.11, 2023].

CCUS and Transition Strategy

The DOE acknowledges coal’s continued role in the energy mix and is exploring Carbon Capture, Utilization and Storage (CCUS) technology to reduce environmental impacts. The Philippines participated in the Southeast Asia CCS Accelerator (SEACA) initiative in May 2023, focused on near-term commercial deployment of a CCS framework and roadmap. This is aligned with the ASEAN Forum on Coal (AFOC) activities [PEP 2023-2050 Vol. II, p.12, 2023].

The DOE also aims to diversify coal import sources to address supply disruption risks from the current heavy dependence on Indonesia [PEP 2023-2050 Vol. II, p.12, 2023].

Planned Policies (Short-Term)

  • Guidelines on Coal Trading, Transport, Distribution, and Utilization in the Philippines
  • Guidelines for Small-Scale Coal Mining (SSCM) programs
  • Amendment of DC2018-03-0006 (Omnibus Rules on Tax-Exempt Importations for Petroleum and Coal)
  • Guidelines on the Registration of Contracts and Agreements by COC Operators

[PEP 2023-2050 Vol. II, p.12, 2023]