Amid the mounting environmental, social, and governmental (ESG) pressures, Semirara Mining and Power Corporation (SMPC), known as the Philippines’ largest coal producer, is expanding its energy production business by venturing into liquefied natural gas (LNG).
In a report by the Manila Bulletin, SMPC Chairman and CEO Isidro A. Consunji shared that there is a possibility that the energy firm will shift to LNG when the business opportunity presents itself.
Though the specific details of the venture have not been made public, a site near their existing property in Batangas is seen as a potential location for their proposed LNG facility.
Consunji further highlighted that there is no reason why the company can’t branch out to LNG when the Calaca location is not only ideal for coal but for LNG as well, adding that the company’s concern is the “business viability.”
Even though there are ESG pressures on corporations, SMPC stated there is no “exit plan” with regards to their coal operation, as it has always been the core business of the company.
However, there is a carbon mitigation plan in place to offset carbon emissions from coal and power plants or reforestation that will help reduce the carbon emitted by their business.
SMPC’s President and COO, Maria Cristina C. Gotianun, has stated that the company’s coal production target for this year will remain the same as last year’s, which was at 16 million metric tons.
Around 70% of SMPC’s coal output will be distributed to the domestic market, while the remaining 30% will be allocated for export.
On SMPC’s power generation, Consunji stated that the marketing strategy will continue to depend on combined bilateral contracts and offerings through the Wholesale Electricity Spot Market.
Gotianum revealed that a capital outlay of Php 1.5 billion has been allocated for the Calaca plant to enhance its electricity generation, which is expected to increase the contributions of the plant to the top and bottom lines of SMPC.