Vitol signs 10-year LNG contract for delivery to Philippines

Vitol, a global energy trading company, announced that it had signed a long term deal with a Philippine-based entity to supply LNG to the country starting in 2025.

It is the first long-term LNG supply agreement signed in the Philippines. The country only started importing super-chilled fuels in 2023.

In a 10-year deal with LNGPH, Vitol has agreed to supply LNG up to 0.8 millions tons annually. The trading house announced this in a late-Tuesday statement.

LNGPH is a company that combines the South Premiere Power Corporation, Excellent Energy Resources, Inc., and the LNGPH Import Terminal.

Vitol said in a statement that "the LNG will be sourced globally and delivered to the LNGPH Terminal in Batangas (Philippines)".

As its Malampaya gas field is producing less, the Southeast Asian nation has built two LNG import terminals, which are fed into gas-fired electricity plants in Batangas.

The first LNGPH terminal in the Philippines, which was developed by Atlantic Gulf and Pacific and acquired jointly by Meralco PowerGen and Aboitiz Power Corp. in December, will be commissioned with a cargo of LNG also supplied by Vitol in April 2023.

First Gen Corp., a Philippine-based power producer, received its first cargo at the second terminal in September 2023.

According to Kpler's data, the Philippines received 19 LNG cargoes on a spot-basis last year.

(source: Reuters)