AP Renewables Inc. and Philippine Geothermal Production Co. Inc. on Friday signed a geothermal resources supply and services agreement for the supply of steam and drilling of new production wells in the Tiwi and MakBan geothermal projects.
The parties said in a joint statement the contract aimed to ensure the long-term operations of the two renewable power plant facilities.
APRI, a wholly-owned subsidiary of Aboitiz Power Corp., operates the 458-MW MakBan geothermal power plants in the provinces of Batangas and Laguna, as well as the 289-MW Tiwi geothermal power plants in Albay.
PGPC is the steam field operator and geothermal resource provider to the power plants.
PGPC will drill 12 new production wells over a six-year period to increase steam availability for the power plant facilities by about 20 percent.
The agreement also ensures a more competitive fuel pricing in the long term.