Vitol signs 20-year LNG supply deal with UAE’s International Resources Holding

Energy and commodities trader Vitol has signed a 20-year LNG supply agreement with International Resources Holding (IRH), Vitol announced on June 25.

Under the terms of the contract Vitol will supply 1 mn tonnes per year (tpy) of LNG on a free-on-board basis to the Abu Dhabi-based company.

The super-chilled fuel will be sourced from 13.2 mn tpy Delfin LNG facility, owned by Delfin Midstream and located in Cameron Parish, Louisiana. The first phase of Delfin LNG is expected to begin operations in 2030, with a final investment decision taken in early June.

The finalization of the contract comes after a Heads of Agreement (HoA) was signed in November. The deal is the largest transaction yet by IRH’s energy trading desk.

“We are excited to conclude this agreement with IRH, which makes part of the most valuable holding company in the Middle East and one of the world’s largest investment firms. Vitol has a longstanding commitment to deliver LNG safely and reliably to customers worldwide by leveraging its robust and diverse long-term LNG portfolio,” Vitol’s Global Head of LNG and European Gas & Power, Pablo Galante Escobar said in a statement.

For IRH, the agreement marks the second 20-year LNG supply deal it has inked in recent months. In April, the Gulf company also announced a long-term deal with Mexico’s Amigo LNG, the flagship project of LNG Alliance.

“This agreement represents an important step in IRH’s long-term strategy to build a diversified, resilient, and globally integrated LNG portfolio. Partnering with Vitol allows us to secure reliable supply over the long term while further strengthening our presence across key international gas markets,” IRH’s CEO Ali Rashed Al Rashdi said in a statement.