Vitol Locks in 10-Year LNG Supply Deal to Bolster Philippines’ Sustainable Energy Future

Vitol Locks in 10-Year LNG Supply Deal to Bolster Philippines’ Sustainable Energy Future

(IN BRIEF) Vitol Asia Pte Ltd has signed a 10-year LNG supply agreement with LNGPH—the integrated LNG power facilities of SPPC and Excellent Energy Resources Inc—to deliver up to 0.8 million metric tons of LNG annually starting in 2025. The LNG, sourced from Vitol’s global portfolio, will be delivered to the Batangas LNG Terminal in the Philippines, supporting the country’s growing energy demands and enhancing energy security. Key stakeholders, including Pablo Galante Escobar, Jay Ng, and Yari A. Miralao, highlighted that this contract builds on a successful history of LNG deliveries and is pivotal for ensuring a sustainable, stable energy future in the region. LNGPH, also involving Linseed Field Power Corporation, is part of a broader strategic LNG partnership with Meralco PowerGen Corporation, AboitizPower, and San Miguel Global Power, aimed at meeting at least 18% of Luzon’s power needs while advancing a transition to cleaner energy sources.

(PRESS RELEASE) GENEVA, 5-Mar-2025 — /EuropaWire/ — Vitol Asia Pte Ltd has entered into a landmark 10-year LNG supply agreement with LNGPH—the integrated liquefied natural gas power facilities operated by South Premiere Power Corporation (SPPC) and Excellent Energy Resources Inc. (EERI)—to reinforce the Philippines’ energy security and support its growing power demands. Under the terms of the agreement, which comes into effect in 2025, Vitol will supply up to 0.8 million metric tons of LNG per year, sourced from its expansive global portfolio, to the LNGPH Terminal located in Batangas.

This significant deal comes at a time when the Philippines is actively expanding its energy infrastructure to accommodate rising consumption and to transition toward cleaner energy sources. The LNG supplied through this agreement is expected to contribute not only to meeting the increasing energy requirements of the region but also to enhancing the overall reliability and stability of the country’s power supply.

Pablo Galante Escobar, head of LNG and an executive committee member at LNGPH, remarked that this new contract builds on a longstanding and productive relationship with Vitol, underscoring the importance of securing a dependable LNG supply for the Philippines—a rapidly growing market with a rising demand for LNG as a less carbon-intensive alternative. Jay Ng, chief financial officer and an executive committee member at Vitol Asia, added that their successful history of LNG deliveries, including the safe and timely delivery of the first cargo in April 2023, has paved the way for this expanded partnership. He emphasized that the agreement demonstrates Vitol’s commitment to providing reliable and flexible energy solutions to its global customers.

Yari A. Miralao, President and Chief Executive Officer of both SPPC and EERI, praised the agreement as a pivotal step in ensuring a sustainable and secure energy future for the Philippines. He highlighted that the contract not only addresses the current energy needs but also supports long-term infrastructure development and the nation’s transition to cleaner energy sources.

LNGPH, which also includes Linseed Field Power Corporation (LFC) as a partner, forms part of a broader strategic LNG collaboration that involves leading energy companies such as Meralco PowerGen Corporation (MGEN), AboitizPower (AP), and San Miguel Global Power (SMGP). This consortium is strategically designed to provide at least 18% of Luzon’s power requirements, thereby strengthening energy security and furthering the shift towards environmentally sustainable energy solutions.

With this agreement, Vitol and LNGPH are set to play a critical role in transforming the energy landscape of the Philippines, ensuring that the nation’s power generation remains robust and resilient in the face of increasing demand and the global imperative for greener energy sources.

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SOURCE: Vitol