Natural gas in Alegria enough for fuel, power

There’s natural gas in Alegria town, southwestern Cebu, a resource that can be tapped for power generation and fuel.

But more drilling needs to be done to find out the extent of the underground reserve,  said Regional Director Antonio Labios of the Department of Energy (DOE).

He said the discovery in barangay Montpeller could possibly support a 5-megawatts power plant, which was welcome news considering the low supply of power in the province.

China Industrial Mining and Petroleum Inc. (CIMP) will continue drilling after the firm submitted an application for a permit for  the production  of natural gas.

A public consultation was held last week as a requirement for the issuance of an environmental compliance certificate (ECC).

Aside from  residents and local officials, the gathering was attended by Cebu  Rep.  Wilfredo Caminero  of the 2nd district and Provincial Board Member Peter John Calderon.

Alegria Mayor Verna Magallon told Cebu Daily News  the discovery of natural gas  would boost the town’s economy. The company promised to prioritize Alegria residents when they hire employees.

The government would get a 60 percent share of the income while 40 percent would remain with the company under a proposed setup.

“The government’s share will be divided into four – the national, provincial, municipal and barangay,” the mayor said.

Magallon said  the China-based company is looking at the possibility of oil exploration in the same area.

CIMP has been in barangay Montpeller since August 2014. It is the fifth company that conducted  drilling operations in the area, said Magallon.

Vladimir Gerchikov, vice president of Polyard Petroleum International Group, one of  two China-based companies  conducting exploratory drilling in Alegria, said more sites with possible natural gas reserves are being considered and will be developed upon compliance with government requirements.

They will bring in equipment from abroad once production starts in six months, Gerchikov said, but they will hire and train local engineers and  technicians.