Regional LNG: Vitol, LNGPH sign long-term LNG supply deal

By Romel S. Gurky

Vitol Asia Pte Ltd., a unit of global energy and commodity trader Vitol announced that it  has signed a 10-year liquefied natural gas (LNG) supply agreement with LNGPH, a consortium of South Premiere Power Corporation (SPPC) and Excellent Energy Resources, Inc. (EERI), to deliver up to 0.8 million metric tons of LNG annually to the Philippines.

The LNG will be sourced from Vitol’s global portfolio and delivered to the LNGPH Terminal in Batangas, helping meet the country’s rising energy demand while ensuring a stable and reliable power supply.

Pablo Galante Escobar, Head of LNG and Executive Committee Member at Vitol, highlighted the importance of the deal in supporting the Philippines' transition to gas. “The Philippines is a growing LNG market, and we are excited to bring LNG supply from our global portfolio to meet this rising demand, contributing to the shift away from more carbon-intensive energy sources,” he said.

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Vitol has been actively supplying LNG to the country since delivering its first cargo in April 2023. Jay Ng, Chief Financial Officer and Executive Committee Member of Vitol Asia, emphasized the company's commitment to the market. “As the Philippines’ demand for LNG continues to rise, we are honored to play a role in securing the country’s energy future through our partnership with SPPC and EERI,” he said.

LNGPH, which includes SPPC, EERI, and Linseed Field Power Corporation (LFC), operates under a joint initiative between Meralco PowerGen Corporation (MGEN), AboitizPower (AP), and San Miguel Global Power (SMGP). The partnership is expected to support at least 18% of Luzon’s power needs, strengthening the nation’s energy security and transition to cleaner fuel sources.

Currently, SPPC operates a 1,200-megawatt combined-cycle gas-fired facility, while EERI has a net sellable capacity of 1,275 megawatts.

Editing by Alexander Ginting