Aboitiz Power unit signs supply deal with Benguet Corp

MANILA, Philippines - Therma Luzon Inc. (TLI), a power generation unit of Aboitiz Power Corp. (APC), has inked a deal to provide power to mining firm Benguet Corp. until Sept. 25, 2011.

The company started providing energy to Benguet Corp.’s Acupan mine, in Itogon, Benguet last Sept. 26, 2010.

 “APC’s agreement with Benguet Corp. shows an outstanding example of two private companies collaborating to achieve mutually acceptable business goals,” TLI COO Benjie Cariaso said.

“Benguet Corp. is a 107-year old company; we are very much aware of Aboitiz’s involvement in the power industry, and how it has become a major player. That’s the kind of partner we seek; one that also has a history as long as ours, and has pertinent experience in the field,” Benguet Corp. senior vice president and COO Renato Claravall said.

APC has committed to provide Benguet Corp. an initial load requirement of 700 kilowatts at peak demand, and between 352,222 kilowatt-hours to 422,664 kwh of electricity per month.

The power supply will be sourced from TLI’s coal-fired plant in Pagbilao, Quezon, which currently has a capacity of 700 megawatts.

TLI won the contract for the generated output of the Pagbilao coal-fired power plant in August 2009. It is responsible for procuring the plant’s fuel requirements, electricity dispatch and sale.

Through its power supply agreement with Benguet Corp. and other private companies, APC further strengthens its commitment to provide reliable and ample power throughout the country at a reasonable and competitive price.

APC is the holding company for the Aboitiz Group’s investments in power generation, distribution, retail and power services. It is a major producer of renewable energy in the country with several hydroelectric and geothermal assets in its generation portfolio.