Vitol’s LNG chartering: adapting to a volatile market

The company has also sought to strengthen its infrastructure position in LNG import markets. Through its subsidiary VTTI — co-owned with IFM Investors (45%) and ADNOC (10%) — Vitol has invested in regasification capacity to secure long-term access to key European terminals. In August 2024, VTTI acquired a 70% stake in Italy’s Adriatic LNG terminal, which has a regasification capacity of 9Bn m3. The deal, valued at approximately EUR800M, aligns with Vitol’s broader strategy of integrating infrastructure and trading operations.

Beyond Europe, Vitol has expanded its LNG supply portfolio through long-term contracts. In October 2023, it entered a 15-year agreement with Chesapeake Energy Corporation (now Expand Energy) for up to one million tonnes of LNG annually from 2028, with pricing indexed to the Japan Korea Marker (JKM). A similar agreement was signed in October 2024 with Coterra Energy, securing 200,000 MMBtu per day of natural gas from 2028, indexed to international LNG benchmarks.

The company has also formed partnerships with national energy firms. In January 2024, it signed a 10-year agreement with India’s GAIL for the supply of one million metric tonnes of LNG per year from 2026. In October 2024, Vitol reached a long-term swap arrangement with China Gas Hongda Energy Trading, under which it will purchase 500,000 metric tonnes of LNG annually from China Gas’s contracted US volumes while delivering an equivalent amount to China Gas on a delivered-ex-ship basis.

Vitol’s involvement in US LNG trade extends beyond recent contracts. Under the previous Trump administration, the company positioned itself as an early mover in US LNG exports. In 2018, it signed a 15-year deal with Delfin Midstream for three million tonnes per annum from the proposed Delfin LNG project in the Gulf of Mexico (also referred to as Gulf of America). The following year, it agreed to purchase 1.5M tonnes per annum from Tellurian Inc.’s Driftwood LNG terminal in Louisiana. These agreements were part of the broader push to expand US LNG exports during that administration.

Despite regulatory uncertainty in the US, Mr Hardy has stated that he does not expect new policies to materially alter the global LNG supply balance before 2030. “I don’t think the new US [LNG] policies are going to dramatically change that balance out to 2030, but they may have an impact in the next decade,” he said in February 2025 at India Energy Week 2025. With approximately 200M tonnes of new LNG supply set to enter the market between 2028 and 2031, Vitol is positioning itself to play a role in this expansion, balancing long-term contracts with opportunistic trading in the spot market.

Through a combination of fleet expansion, strategic partnerships, and infrastructure investments, Vitol continues to adjust its LNG chartering activities in response to shifting market conditions. The company’s ability to capitalise on regional price disparities, manage regulatory uncertainty, and secure long-term supply agreements reflects a pragmatic approach to an evolving global LNG landscape.