Lafarge Republic Inc. has signed an agreement that will allow the Phinma-led Trans-Asia Oil and Energy Development Corp. to supply power to the cement firm over the next five years.
In a disclosure to the Philippine Stock Exchange on Monday, Lafarge Republic (formerly Republic Cement Corp.) said the Contract for the Sale of Electricity was signed on Monday and will be effective starting December 26 this year.
The disclosure did not have much details and officials declined to provide more information, noting that these were confidential, as stated in the agreement both parties signed.
Trans-Asia is currently in the business of supplying power to several large industrial customers and electric cooperatives.
Last year, the power firm’s 3.4-megawatt bunker-fired power plant in Guimaras began supplying power to the wholesale electricity spot market (WESM) in the Visayas, in addition to delivering reliable and stable peaking power to the island.
A total of 3.63 gigawatt-hours of power was produced last year, of which 89.7 percent was sold to the Guimaras cooperative and the balance of 10.3 percent was traded on the WESM, resulting in total revenues of P61.9 million and net income from operations of P13.5 million.
In 2011, Trans-Asia Oil had also signed a long-term contract to supply the electricity requirement of another cement firm, Holcim Philippines.
The ongoing transfer to La Union of the 21-MW bunker power station assets of the company’s wholly owned subsidiary CIP II Power Corp. (CIPP) will not only maximize the facility’s operating capacity as a merchant plant, but will also better serve the contract with Holcim.
In addition to the long-term contract with Holcim, the company had also previously signed contracts with electric cooperatives in Batangas, Sorsogon and Quezon for the supply of power to their customers.