Trader and shipowner Vitol has sealed an agreement to supply the Philippines with more than 100 LNG cargoes over 10 years.
The company said it had signed a long-term gas supply deal with LNGPH, backed by South Premiere Power Corporation (SPPC) and Excellent Energy Resources Inc (EERI).
The contract is for 8m tonnes, starting this year.
Vitol will ship 0.8m tonnes per year. This equates to 17.92m cbm, or 103 cargoes on a standard 174,000-cbm LNG carrier.
The LNG will be sourced from Vitol’s global portfolio and delivered to the LNGPH terminal in Batangas.
“This agreement will help meet the Philippines’ growing energy needs and contribute to the reliability and stability of the country’s energy supply,” Vitol said.
Vitol head of LNG Pablo Galante Escobar added: “The Philippines is a growing LNG market and we are excited to bring supply from our global LNG portfolio to meet rising demand in the country, thereby contributing to the transition to gas from other more carbon intense energy sources.”
LNGPH is part of a landmark LNG partnership between Meralco PowerGen Corporation, AboitizPower and San Miguel Global Power (SMGP).
The collaboration is set to support at least 18% of Luzon’s power needs, strengthening the country’s energy security while advancing the transition to cleaner and more sustainable energy sources.
Currently, SPPC has a net sellable capacity of 1,200 MW from its combined-cycle gas-fired facility, while EERI has a net sellable capacity of 1,275 MW.
Vitol Asia chief financial officer Jay Ng said: “Vitol delivered the first LNG cargo to the Philippines back in April 2023, since then we have delivered a number of cargoes safely and reliably to the Ilijan LNG terminal.
“As the Philippines’ demand for LNG continues to rise, we are honoured to play a role in securing the country’s energy future through our partnership with SPPC and EERI.”
Yari Miralao, chief executive of both EERI and SPPC, called the deal a “significant step” towards meeting the country’s growing energy demands.
