Vietnam Mulls Second LNG Term Contract After Deal with Shell

Wednesday, August 12, 2026

State-controlled Petrovietnam Gas is sounding out suppliers for a possible tender to procure liquefied natural gas under a five-year contract, according to a document reviewed by Reuters.

If agreed, it would be Vietnam's second term contract after a deal with Shell earlier this year, as the Southeast Asian manufacturing hub builds an LNG industry from scratch to help meet growing energy demand.

The request sent in June to potential suppliers under a "market sounding exercise" is for the supply of 250,000-450,000 metric tons for the Thi Vai Terminal, with delivery starting in January 2027 or later, the document shows. No tender has been announced yet.

In January 2026 PV GAS awarded its first term contract to date to Shell. The British energy giant will deliver the super-chilled fuel to Vietnam from 2027 to 2031, under a five-year supply deal for about 400,000 tons a year.

The deal with Shell was finalized as Vietnam negotiated with the United States measures to reduce its large trade surplus with Washington, including via the purchase of LNG from U.S. firms.

No term deal with any U.S. firms has been announced as Hanoi and Washington continue negotiations for a trade deal while Vietnam faces higher U.S. tariffs than those on many peers.

Vietnam, which is seeking to reduce its reliance on coal and lower its carbon emissions, has two LNG terminals, both located in the south, which have been supplied under spot contracts.

Thi Vai Terminal run by PV GAS can handle 1 million tons a year and is being expanded to 3 million tons per year. It supplies two power plants with combined capacity of 1.5 gigawatts.

The other terminal, Cai Mep Terminal owned by AG&P LNG, has a capacity of 3 million tons per year.

(Reuters)

Categories: Energy LNG People Industry News

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