Petrovietnam Agrees First-Ever LNG Term Deal with Shell

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© vladsv / Adobe Stock
© vladsv / Adobe Stock

State-owned Petrovietnam Gas has awarded its first-ever term supply tender seeking liquefied natural gas (LNG) to energy major Shell, which will deliver the super-chilled fuel to Vietnam from 2027 to 2031.

The five-year supply deal will see Shell deliver about 400,000 metric tons a year of LNG to the Southeast Asian nation, according to a Petrovietnam Gas statement issued late on Tuesday.

The LNG will be supplied on a delivered ex-ship (DES) basis to Petrovietnam Gas' Thi Vai terminal.

Vietnam began importing LNG in 2023, with its first cargo delivered to its inaugural Thi Vai import terminal. Operated by Petrovietnam Gas, the terminal in the country's south near Ho Chi Minh City will primarily supply two gas-fired power plants, which began commercial operations in mid-December.

Vietnam has only imported LNG from the spot market so far, shipping in 0.5 million tons of the fuel in 2025, according to Kpler data.

It issued its first-ever tender seeking term supply in August.


(Reuters - Reporting by Emily Chow; Editing by Muralikumar Anantharaman)

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