Global energy trading firm Vitol has inked a long-term agreement to supply liquefied natural gas (LNG) to the Philippines for the next decade, starting in 2025.
Under the agreement, Vitol will deliver up to 0.8 million tons of LNG annually for 10 years to LNGPH, an entity integrating the power facilities of South Premiere Power Corporation and Excellent Energy Resources, Inc.
In a Reuters report, the deal marks the first long-term LNG supply contract for the country, which only began importing the fuel in 2023.
Vitol announced that the LNG will be sourced from its global supply network and delivered to the LNGPH terminal in Batangas.
The Philippines has developed two LNG import terminals to support its transition as domestic output from the Malampaya gas field declines.
The first LNGPH terminal, commissioned in April 2023, was initially developed by Atlantic, Gulf and Pacific before its acquisition by MERALCO PowerGen, San Miguel Global Power, and Aboitiz Power Corporation.
The second terminal, operated by First Gen Corporation, received its commissioning cargo in September 2023.
In 2023, the country received 19 LNG cargoes, all procured on a spot basis, according to data from analytics firm Kpler.
The long-term agreement with Vitol is expected to enhance energy security and ensure a stable supply of LNG for the Philippines in the coming years.
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