Global energy trading house Vitol (VITOLV.UL) said it has signed a long-term deal with a Philippine entity to supply liquefied natural gas (LNG) to the country for the next decade, starting in 2025.
This is the first deal signed for long-term supply of LNG delivery into the Philippines, which only began importing the super-chilled fuel in 2023.
Vitol will supply up to 0.8 million tons per annum of LNG for 10 years in a deal signed with LNGPH, said the trading house in a statement late on Tuesday.
LNGPH is an entity that integrates the power facilities of South Premiere Power Corporation and Excellent Energy Resources, Inc., which receives gas from the LNGPH import terminal.
"The LNG will be sourced from Vitol's global portfolio and delivered to the LNGPH terminal in Batangas, Philippines," Vitol's statement said.
The Southeast Asian nation has developed two LNG import terminals so far, which feed into gas-fired power plants in the Batangas province, as it faces declining output from its Malampaya natural gas field.
Its first LNGPH terminal, developed by Atlantic, Gulf and Pacific and jointly acquired by Meralco PowerGen, San Miguel Global Power and Aboitiz Power Corp in December, was commissioned in April 2023 with an LNG cargo also supplied by Vitol.
The second terminal, operated by Philippine power producer First Gen Corp took delivery of its commissioning cargo in September 2023.
The Philippines received 19 cargoes of LNG last year, all on a spot basis, according to data from analytics firm Kpler.
(Reuters, March 5, 2025)
