Coal market in the Philippines

Earlier Report Observations

The Philippine coal market volume grew from 28.3 million metric tons in 2018 to 38.1 million metric tons in 2022, supported by policies designed to increase domestic supply and meet power generation demand. The introduction of the Philippine Conventional Energy Contracting Program (PCECP) streamlined the award of Coal Operating Contracts, while tax exemptions on imported mining equipment reduced operational costs for producers. Concurrently, investment in mine-mouth power plants and new coal-fired generating assets maintained strong consumption, pulling in substantial imports alongside local production.

Growth continued through 2020 even after the October announcement of a moratorium on new coal power plants, as the Department of Energy moved to suspend import duties to prevent electricity price increases. The market then stabilized in 2021, influenced by the ongoing moratorium and early voluntary retirement of some coal plants under the energy transition policy. A renewed push for exploration via a competitive challenge for coal contracts in Mindanao and adjustments to import taxation helped drive a 9.6% market expansion in 2022, despite global price pressures from the Ukraine-Russia war.

The coal moratorium policy persisted in subsequent years, encouraging further managed phase-down of coal capacity. Major incumbent players like San Miguel Global Power Holdings Corp. remained active, and the government continued to facilitate resource development through initiatives like the 2026 PCECP bid round for coal exploration.

Production coal in the Philippines

In kind, 2017-2020, K t

The Philippines was among the world's leading coal producers from 2017 to 2020, ranking 26th globally by production volume during this period.

Top producers of coal, 2017-2020

World map of production of coal, 2017-2020

In 2020, the Philippines produced 12 951 K t of coal, representing a 5.8% decrease compared to 2019. Over the 2017-2020 period, production increased by 8.5%, with a compound annual growth rate of 2.8%. The lowest production level was recorded in 2018 at 11 755 K t, while the peak occurred in 2019 with 13 751 K t. The largest year-over-year increase was 17.0% in 2019.

Annual dynamics of production in the Philippines in kind, 2017-2020, K t

In value, 2017-2020, M $ US

The Philippines experienced a second consecutive year of declining coal production in value terms. In 2020, coal output was valued at 406.8 M $ US, marking a sharp decrease of 29.6% compared to the previous year. Over the 2017-2020 period, production value decreased by 30%, with a compound annual decline rate of 11.2%. The highest value was recorded in 2018 at 612.7 M $ US, while the largest increase occurred in 2018 with a 5.4% rise.

Annual dynamics of production in the Philippines in value, 2017-2020, M $ US

Exports coal from the Philippines

Exports in kind, K t

The data shows irregular changes, indicating a volatile market environment for coal exports. The Philippines exported 7 358 K t of coal in 2020, down 32.9% from the previous year. The lowest export volume was recorded in 2018 at 5 391 K t, while exports peaked in 2019 at 10 967 K t, representing a two-fold difference between these years. The largest increase occurred in 2019 with a 103.4% surge.

Annual dynamics of product's exports from the Philippines in kind, 2017-2020, K t

From 2017 to 2020, coal from the Philippines was supplied almost exclusively to China, which absorbed 94.2% of total exports in volume terms.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from the Philippines in kind, 2017-2020

Exports in value, M $ US

In 2020, exported coal volumes from the Philippines reached 231 M $ US, constituting a decline of 49.8% compared to 2019. Over the 2017-2020 period, export value decreased by 31.5%, with a compound annual decline rate of 11.8%. The maximum value was recorded in 2019 at 461 M $ US, while the largest increase occurred in 2019 with a 63.9% rise.

Annual dynamics of product's exports from the Philippines in value, 2017-2020, M $ US

From 2017 to 2020, China served as the primary destination for coal exports from the Philippines, consistently absorbing 93.9% of total exports in value terms.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from the Philippines in value, 2017-2020

Imports coal to the Philippines

Imports in kind, K t

After two years of growth, coal import volumes to the Philippines declined. In 2020, imports reached 28 714 K t, showing a moderate contraction of 3.2% year-over-year. Between 2017 and 2020, imports increased by 39%, equating to an annualized growth rate of 11.6%. The maximum volume was recorded in 2019 at 29 674 K t, while the largest increase occurred in 2019 with a 35.5% rise.

Annual dynamics of product's imports to the Philippines in kind, 2017-2020, K t

From 2017 to 2020, Indonesia remained the overwhelmingly dominant supplier of coal to the Philippines, accounting for 92.3% of total imports in volume terms.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to the Philippines in kind, 2017-2020

Imports in value, M $ US

After two years of gains, foreign coal supplies to the Philippines declined in value. In 2020, imports totaled 1 577 M $ US, constituting a decline of 23.0% versus the previous year. The maximum value was recorded in 2019 at 2 047 M $ US, while the largest increase occurred in 2018 with a 15.8% rise.

Annual dynamics of product's imports to the Philippines in value, 2017-2020, M $ US

Throughout 2017-2020, the partner structure for imports in value terms was centered on Indonesia, whose share amounted to 88.9% of total flows, while other markets formed a less significant portion.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to the Philippines in value, 2017-2020