Vietnam Seeks Second LNG Term Contract Amid Energy Demand Growth
Vietnam's Petrovietnam Gas (PV GAS) is considering its second long-term liquefied natural gas (LNG) contract, this time with suppliers other than Shell. The request for a five-year deal comes as the Southeast Asian country builds an LNG industry to meet growing energy demand.
The tender, which has not yet been announced, would cover 250,000-450,000 metric tons of LNG for delivery starting in January 2027 or later at the Thi Vai Terminal. The terminal, which can handle 1 million tons a year and is being expanded to 3 million tons per year, supplies two power plants with combined capacity of 1.5 gigawatts.
PV GAS awarded its first term contract to Shell in January this year for the supply of about 400,000 tons a year from 2027 to 2031. The deal 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 yet, and Vietnam continues to face higher U.S. tariffs than those on many peers.