Philippines Set to Receive First-ever LNG Cargo for Power Generation

Philippines Set to Receive First-ever LNG Cargo for Power Generation

The Philippines has bought its first-ever liquefied natural gas (LNG) cargo, which will be delivered this month, bound for a new terminal that will fuel a 1,200-megawatt power plant, global energy trader Vitol said on Monday (Apr 3).

Vitol Asia, a supply and trading unit of Vitol Group, will supply the LNG cargo to San Miguel Global Power Holdings from its global LNG portfolio, Vitol said in a statement.

It did not disclose the volume and price.

The purchase comes after spot LNG prices in Asia fell sharply from all-time highs last year when Russia cut gas supplies to Europe following the Ukraine war and sparked a flurry of purchases by European nations.

Faced with declining output from its Malampaya natural gas field, the Philippines is the newest LNG buyer in the region as it seeks alternative fuel supply for existing gas-fired power plants producing more than 3,000 MW, including San Miguel Global’s 1,200-MW Ilijan power plant.

The LNG cargo will be delivered around mid-April to Singapore-based Atlantic, Gulf and Pacific’s (AG&P) import terminal in the Philippines.

Source: Business Times Singapore